Tuesday, 02 June 2009 10:53
Monday, the impossible happened.
General Motors, an enduring symbol of America's industrial might, has declared bankruptcy. It will be the 4th largest bankruptcy in American history, involving more than 172 billion dollars of debt. The American taxpayer now owns 60 percent of the Michigan-based automaker - and it didn't come cheap. The final price tag for both GM and Chrysler's "restructuring" will be somewhere in the neighborhood of 50 billion dollars.
And yet, despite Monday's gloomy announcement, and the months of anxiety that led up to it, I woke up this morning with a renewed sense of hope. The plight the auto industry has faced over the past year has been a wildfire; devastating in its destructive power, but leaving in its wake the opportunity for new growth.
The uncertainty is behind us. The worst has happened, and now, as dealers always have, we will move forward. Those of us that have made it this far won't give up now. We will streamline our operations, with an eye out for new opportunities. We will do more with less, cut back where we can, and work to maintain solid customer relationships. As always, the fundamentals of running a small business will carry us ahead.
Like many dealers, I'm not precisely sure what the future holds for some of my domestic stores. As AIADA's chairman, I will spend the rest of 2009 advocating not just for my businesses, but for all dealers. I will work to remind legislators and pundits that we are not that enemy. That dealers bring immeasurable value to communities, through the cars we sell, the taxes we pay, the charities we contribute to, and the workers we employ.
The phrase "too big to fail" has been tossed around ever since this recession began, with the domino-like collapse of so many financial institutions. Well, dealers aren't too big to fail. But we might be too smart to fail. We might have too many people relying on us to fail. And we are certainly too stubborn to fail.
This industry isn't about hedge funds and bond holders. It's about people, factory and dealership employees, working for their families. And it's about the product. The cars and trucks Americans have embraced since the Model T. This is a country of open roads and roaring engines, and bankruptcy can never change that fundamental truth.
Russ Darrow, AIADA Chairman
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