Monday, June 22, 2009

Dead Cat on the Line...

ok another awesome blog from Sydney Allen Johnson....
CHeck all his awesome essays out at Babylon Mystery Orchestra

There's a dead cat on the line. I was first acquainted with this old adage in the early 90's while living in Augusta, Georgia. Apparently it is an old expression referring to the likelihood that something, somewhere is wrong. Very wrong. I thought about this expression after Chrysler (soon followed by General Motors) announced they would be closing down many of their dealerships. Since these are "franchise" operations that do not represent significant, if any, expenses for the company, but instead represent streams of revenue, it seemed mighty strange that they would have a desire to close any of them. To the contrary, they should be encouraging as many of these businesses as possible to stay open since they represent the public face of the company during this economic downturn that has created such a malaise for the auto industry. Instead of putting the best face they can to the public, they have curiously chosen to do exactly the opposite and essentially lower their public profile. There certainly seems to be a dead cat on the line...and there is.

There are just too many things that don't make sense. It isn't just the unjustifiable business decision to cut operations that don't affect the costs of the company's business. It is also the process of selecting the dealerships to be closed. It is particularly suspicious that many of the dealerships selected for elimination are among the most successful operations within the Chrysler network. Many of them have been Chrysler and Dodge dealers for decades. What possible justification could they have for closing down successful dealerships that represent the very lifeblood of their company's existence? Not only are they choosing to reduce the flow of cash into their company, they are doing so in the midst of a recession that has been particularly disastrous to the auto industry. Is somebody missing a cat?

Some of the dealerships that got the axe are telling stories that raise considerable doubt that there were ever any economic reasons for this process and that there was, instead, a political motivation. One dealership slated for closing in Alvin, Texas, increased its new car sales 50% in the first four months of 2009! How can you rationalize closing a dealer who is increasing sales while in the throes of the worst recession since the 1970's? As it turns out, this story is not unique. Successful and highly profitable dealerships have all too often been the ones selected for elimination. Smell a dead cat?

As you dig into this you find that there is evidence to suggest that dealers selected for elimination tended to be ones who are affiliated with, or donated money to, the Republican party and its candidates. Coincidence? When the the list of 789 closing franchises is compared to the list of political donors making contributions in the November 2008 election, less than 10 percent gave to Democrats while 90 percent gave substantial sums to Republican candidates. The franchise owners selected for dealership elimination contributed over $450,000 to Republican presidential candidates and the GOP, while $7,970 was donated to Hillary Clinton's campaign and $2,200 was given to John Edwards' campaign. By comparison, Barack Obama received a mere $450 in donations! Dead cat found.

Some of the dealers on the hit list jump right out at you:

“Vern Buchanan is a Republican Congressman from the Tampa Bay area. Robert Archer is the son of former Republican Congressman Bill Archer. John Culberson, a libertarian-leaning Conservative, is now the Congressman for that West Houston District. He was heavily supported in his election efforts by the Archers Family. Additionally, James Crowley, owner of a Chrysler Dealership in Escondido, California is on the list to be closed. Crowley is a big backer of libertarian-leaning Republican Cong. John Campbell of Orange County.”

The list is heavy with influential Republicans and libertarians. Another name on the list is Ray Huffines, who owns a large dealership in the Metro-Dallas/Ft. Worth area. The Huffines family have been major contributors to Rep. Ron Paul (R-TX) over the years...- American Thinker

There is more...alot more.

Go here to read it

And never forget my fellow patriots....

Die with your boots on....


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