This just in from State Sen.
Frank Kloucek.
On a side note, last week some of my attorney colleagues and are were wondering what actual good it would do to close the small car franchisees as the dealers don't pay them. Typically, in a franchise arrangement, the
franchisee pays fees or royalties to the franchiser for the right.
Image by woody1778a via Flickr
So, what skin is it off the nose of the
car manufacturers if there are ten or 100 or 1000 or 10,000 deaders? The only thing we could figure was the costs to ship parts.
Perhaps someone else who is a car franchisee could comment? Why close the little guys, bankruptcy or not? Are they just a pain in the arse to the Big Three?
Anyway, here's Senator Frank's latest missive:
Image via Wikipedia
June 10th 2009
Josh Albert Legislative Director
Congresswoman Stephanie Herseth Sandlin
Washington DC
Dear Josh:
Please consider this a strong letter of support for HR2743 concerning some auto manufacturers arbitrary and capricious efforts to close down their franchise dealers, bypass state antitrust and franchise laws and other actions that will hurt South Dakota’s economy. Closing dealerships in my opinion is another way for auto manufacturers to continue their efforts for a monopoly on the industry. They want to control the new car industry completely and these actions prove it once again. Former Senator Charlie Flowers of Iroquois, myself and many other state legislators were instrumental over the years in passing state laws protecting car dealers from such practices. Many other states passed similar legislation. Now with the protective hood of federal bankruptcy the car manufacturers are trying to bypass our laws. Josh, I am asking Rep Herseth Sandlin to Cosponsor HR 2743. Your support is needed in this key legislation.
Senator Frank Kloucek
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