Land of the FREE?

Land of the Free? (continued)

But something is very wrong here. What is being done under the guise
of bankruptcy and ‘for the good of the country’ to those dealers who are
the foundation of our auto industry is nothing short of criminal. Beginning in
the Northeastern corner, look closely at the devastation being perpetrated
upon some of our most productive citizens through the abrupt and brutal
termination of Chrysler dealers and pending termination of General Motors
dealers.

Nancy represents franchised automobile dealers by
orchestrating dealership sales and closures for those
wishing to divest, facilitating targeted acquisitions on
behalf of buyers and determining the true market value of
their business. They have been successfully serving auto
dealers for over 25 years, with great professionalism.

Consider the list of the 789 Chrysler dealerships who received letters announcing their eminent closure in which New
Hampshire, Maine and Vermont are scheduled to lose 12 dealerships. But that does not take into account the second phase
of closures which will include the many dealers who will be unable or unwilling to meet the requirements, guidelines and
demands of NEWCO - the new Chrysler/Fiat company. It also does not include the first barrage of General Motors dealers
who have been notified of their own pending demise or the second tier fall-out from that event which will surely be as
devastating as it will prove to be under NEWCO. Nor does it acknowledge the number of other dealers of all franchises who
will fail to survive or who will not be renewed as the economy tailspins as a result of this automotive upheaval.

Estimated effect of loss of dealerships

SUPERIOR DEALER SOLUTIONSsm

Nancy Phillips
President/Nancy Phillips Associates, Inc
email: n phillips @automotivedealersnetwork.com

If we take seriously the ability of the government to remake our domestic auto industry in the image of Toyota Motor Sales,
USA, Inc. and we redefine the market areas based on the Toyota dealer network then Maine, New Hampshire and Vermont
will likely loose between 34% and 39% of their dealers. This is what that would look like:

State

Dealerships

Estimated
Closures

Percent
Reduced

New Hampshire

155

39%

Maine

135

39%

Vermont

34%

Estimated effect o

n unemployment rate

State

Population

Number
Employed

Jobs
Lost

Unemployment
Rate

New Hampshire

1,300,000

650,000

2,500

Up .38%

Maine

1,300,000

700,000

2,300

Up .33%

Vermont

600,000

325,000

1,300

Up .40%

Whatever happened to the land of the free – or was that yesterday? What right have you to desecrate the lives of those who
have supported their employees, their communities, their country and their President? And for what? When all is said and done
please show me the cost savings, the benefit to the taxpayer and the advantage to our country.

Someone may have told you that there are too many dealers and that the domestic industry must now model itself after the
successful one – Toyota. And while it is true that Toyota and Honda have eaten our lunch, the reason is not because there are too
many Chrysler, General Motors and Ford dealers. The number of dealers has no more bearing on what has gone wrong with the
automobile industry at the hands of its franchisors and our country’s fair trade policies than the number of convenience stores did
under the Walmarting of America. And while Wal-Mart put many independent entrepreneurs out of business it did not do so under
the auspices of our government.

Yes, I know those state franchise laws are in the way, but did any of your car czars even think to ask each one of those dealers
whose financial lives you have emasculated if they would have accepted a reasonable termination with a guarantee to buyout their
vehicle and parts inventories if confronted with the alternative of their franchisor filing bankruptcy?

And has anyone described to you the totality of the ruin perpetrated against these good citizens, their employees, their customers and
their communities?
We can move across the country in this manner predicting the carnage as we go. In larger states the percentages loom lower but
that does nothing to mitigate the painful loss of employment, loss of a good friend to the community, loss of a major contributor to
the local economy, loss of the convenience of a dealership nearby and loss of a privately held business to a government that now
seems to call all the shots.

Respectfully yours,

Nancy Phillips

Message to Dealers:

Dealers of all franchises need to stand together. If today your own dealership is not at stake, then

perhaps it may be your turn on another day. Too many dealers are quietly harboring great hope for

their own future as part of a new economy with fewer of their fellow dealers to compete against.

While this industry may survive with fewer dealers, can the survivors feel comfort and success knowing
it was delivered on the backs of other dealers some of whom must file personal and corporate
bankruptcy and others who will simply never overcome the enormous personal and financial losses
that will inevitably occur?