My local dealer being closed down.
#81
07-11-2011, 08:16 PM
32vid - The Federal government does not allow vehicle manufactures to sell direct. They are required to sell to independent dealers. The last manufacturer to try it was Schwinn in 1962 with their own store in Chicago. It cost them big time with fines.
I will stand on the fact that absent a bankruptcy court order a manufacturer must buy out the dealers interest if they close them. The last to do that was GM when prior to bankruptcy in 2004 they closed the Oldsmobile dealers down. It cost them billions. GM management later admitted that was a mistake. Five years down the road the bankruptcy judge would have done if for them.
I will stand on the fact that absent a bankruptcy court order a manufacturer must buy out the dealers interest if they close them. The last to do that was GM when prior to bankruptcy in 2004 they closed the Oldsmobile dealers down. It cost them billions. GM management later admitted that was a mistake. Five years down the road the bankruptcy judge would have done if for them.
There is no law against manufacturers from selling direct. What stops them from selling direct is the franchise agreement with the dealers. Who would dump their own money to set up shop then have to compete with the factory?
I have known of GM dealerships that were owned and run by GM on the quiet because no one was willing to buy them.
Yes GM had to buy out those Old's dealers for one reason. GM wanted to stop Old's production completely amd at once. To do that GM would be breaking the franchise agreements. When you break a contract you have to compensate the other parties.
Under normal circumstances as franchise agreement term ends the factory does not have to renew it.
#82
07-12-2011, 02:19 PM
Extreme HDF Member
"When you break a contract you have to compensate the other parties."
Now you have it correct. Why is it that your head can not understand that this would apply to HD breaking the contract with an individual dealer.
Yes, federal law prohibits manufactures from selling vehicles on their own.
Now you have it correct. Why is it that your head can not understand that this would apply to HD breaking the contract with an individual dealer.
Yes, federal law prohibits manufactures from selling vehicles on their own.
#83
07-12-2011, 03:59 PM
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since this was originally about local dealerships that were closing I thought I would add in here. My local HD dealer Weib's Harley in Princeton, IL is gonna be closing looking like the end of the month. They in some shape or another have been open since before i was born it was formally known as Dant's Harley in its current location and a different one also. From what I have been informed of they are being closed for not having the new big *** shops. They are more of a mom and pop shop and thats what draws people to them. If they keep going like this we will lose Reiman's HD in Kewanee , IL since they are still a lil shop also compared to the big *** expensive as hell looking building that is called Starved Rock HD in Ottawa.
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Don Cronaueri
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10-21-2012 08:36 PM
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