RUSH: Jay in Norfolk, Virginia. Hello, sir. Great to have you on the EIB Network.
CALLER: Hey, Rush, how you doing?
CALLER: My question is with the Chrysler and GM downfall going bankrupt —
CALLER: — now they’re dumping dealerships. Dealerships are independently owned. What purpose or sense would that make whether they sell one unit or a hundred units a month? I mean, they still employ people which they won’t be after they’re told they can’t sell anymore.
RUSH: See, this is an interesting question to me because let’s look at the Obama business plan. Let’s take it from top to bottom. First thing you do is you take over these companies. After you take ’em over, you then put somebody in charge to dismantle them who doesn’t even probably know how to turn a car on, much less use a blinker, and, if so, probably never been in a factory. So then they dismantle it, and one of the decisions they make is, we’re going to stop making cars that people want and we’re going to make cars that people don’t want but we’re going to force them into because we need to save the planet because America is destroying it. Then, after deciding to build cars that historically people have rejected, they then close about 2,000 dealerships for Chrysler and 2,000 for General — (interruption) how many? No, it’s more than that, it’s going to be a total of 2,100 before they’re through with Chrysler. So, four thousand dealerships they’re going to close, total. Which means it’s going to be harder to go get one of these cars.
CALLER: Plus they employ an average of about a hundred people per dealership, so that’s how many unemployed people?
RUSH: I think it’s a little lower than that, 50. But, regardless, they’re thrown out of work, and the decisions as to which dealerships to shut down appear to also be political. People are studying it, can’t confirm it yet, but I left out a phase. Obama slashed Chrysler’s ad budget in half. So you’re going to build cars that people don’t want, historically have said they don’t want, you’re gonna cut the advertising budget, which lets people know the cars exist and then you’re going to close a lot of dealerships, which are going to make the cars hard to find. Now, would somebody explain this business model to me? This sounds like a business model designed to fail. You got a new line of cars that nobody wants, you gotta get ’em in the car to save the planet, but then you cut the advertising in half, so people are going to be less aware of the new cars. And then the place they go to buy one may not be there. They may need meal money for the road trip to get to the dealership. None of this makes any sense. And his point about dealerships being independently owned, he’s right about that. I mean they have ties to the manufacturer, but I don’t know if dealerships are not manufacturer owned. So that is a curious point. It’s the way a community organizer does it, folks, that’s the only way to understand it.