For Car Dealers, Shock Turning To Anger

(CBS)  The Wykoff Chrysler dealership has been selling Chryslers and Jeeps in New Jersey since the Reagan Administration. Cars are part of Rob Engel's DNA.

"My brother and I have been in this business since we were 11 and 13 years old," Engel said. "It's all we've known.

Engel's father began repairing cars across the street right after fleeing Austria just ahead of the Nazis. Fixing cars morphed into selling them. The business is now owned by Rob and his brother, Rick.

A successful mid-size dealership - at least the Engels thought so - until two days ago. That's when the call came from Chrysler, reports CBS News correspondent Tony Guida.

"This was a sucker punch for my brother and I," Engel said.

This shop and another the Engels own half-an-hour away - terminated.

"I'm making the transition from shock to anger," Engel said.

Anger may be an understatement. Chrysler's deadline means Engel has less than a month to sell the 100 cars left on his lot. In this economy, that's impossible. With the money Engel stands to lose, Chrysler's bankruptcy could result in personal bankruptcy for him.

Jim Anderer says it's nothing short of grand theft auto that Chrysler is forcing his Long Island Jeep dealership to close - he's been there for 22 years. Forty eight jobs and millions of dollars of inventory are on the line. Anderer is not going quietly.

"There's been a gun put to my head," Anderer said. "I have no choice. I'm going to sue."

The Chrysler axe fell on Geoff Pohanka in Maryland, too. Pohanka is also a GM dealer; he sells Chevys, Cadillacs and Saturns. GM plans to dump Saturn, leaving Pohanka wondering what will happen to this business.

"We really do not know specifically our future," Pohanka said. "If we will have a future."

But unlike Chrysler's ultimatum to shut down next month, GM is telling dealers the bad news 18 months in advance.

"General Motors at least is giving dealers time to make plans," Pohanka said.

Geoff Pohanka, Jim Anderer, and Rob Engel - three men in free fall from careers they spent their lives nurturing. They know countless others are falling, too. But that doesn't make the descent any less frightening.

[lkaz67]

While i feel bad for the car dealership, it's time care dealerships went the way of the dinosaur. This is the 21st century and it's quite obvious that the current distriubtion system is antiquated; sure it served a purpose "pre-internet", but seriously why exactly do we have to go to a showroom and argue about the price of something, when we could just as easily go online and order direct from the manufacturer and not have to pay any markup? And let's not even get started on the gluttony of cars that just sit on the dearlers lot? This is the only industry that doesn't work on supply and demand, if you have 10,000 cars on your lot, why am i (the consumer) forced to pay inflated costs? Sorry auto dealers time to evolve or go bye bye!

[blogspa]

American auto companies have been poorly run for decades and the fault lies at both the feet of management and the union. The companies didn't make good products and the employees were overpaid. That wouldn't work for a lemonaide stand!

I do get tired of people bashing white collar management for being overpaid and supposedly not doing any work compared to the blue collar workers. That's total bull. My parents worked in a factory and punched in and out exactly on time. They never took work home and they weren't responsible for the viability of the company. Their job could be done by anyone with a little training. Corporate executives, my husband being one, often work more than 12 hours a day and work weekends. I've seen him work as much as 18 hours a day when it was necessary. He doesn't get overtime, he gets bonuses. He also helps make sure everyone in the company gets a pay check.

If you don't like not getting paid what you think your work is worth, then work to get a job where you do make more money. Just remember that if anyone can do your job with a little training then you're always going to be replaced by someone cheaper or faster.

[number1GI]

I do not delight in the misfortune of others. Only when what goes around comes around.. They brought it on themselves Understand?

[number1GI]

Stickdog 3 !!!!! you are so right !!!!! about the dentist I wonder if we have the same company !

[number1GI]

I wish every car dealer in the US could read this: Remember all those phony repairs you said my Chrysler needed when I brought it in for an oil change ??? Well now is the time for you to bite the bullet !!!!!!!!!!!!!!

[Dgunner]

Stickman is right about the dentists. I went recently to dentist outof my network. {the indian nations} He charged 699.00 for one Xray and a cleaning. I called the man and asked if the bill was correct? They said it was. I sent them one for 499.00 for waiting one hour and ten minutes over my appointment scheduled time.Thy asked what my line of work was to justify this bill? I replied that I analyzd the services of dentists for the american dental association. I haven't heard from them and nothing on my credit report.

[jonesjep]

"For Car Dealers, Shock Turning To Anger"
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They have nobody to blame but themselves. The autoworkers for decades have voted Democrats. Michigan has been run into the ground by the Democrats that have run the state. They were in a recession when the rest of the country was doing great. They did it again this past election and contributed to electing a radical socialists who did not want their company to survive and even now is imposing milage restrictions and "cap and trade" schemes that will guarantee that they not only fail but Ford will be close behind.

[ericrt]

Most of you hardheads believe the crap you read in the newspapers. The truth about the car industry is simply that they run slave camps. When an executive of the company is given an outrageous salary and bonuses for screwing the guy doing all the work, there must be something wrong with this picture. Ask yourself why these guys are worth more than ten times the lowest paid worker? They should all be paid by the hour instead of by the false idea that they are worth more for doing nothing constructive. Most of those running the companies couldn't hang a tire if they had to. The Harvard crew has wrecked the comfort we used to have in American Car companies Fire all Harvard Graduates and you will probably have a better run business.

[butterflync]

Yes the dealers are getting hit. But it is their actions that have also contributed to this.

Several years ago, I thought about giving a domestic vehicle a try. I did a comparison, and the reliability and pricing of Toyota and Honda were better than the comparable GM vehicle. Despite this, still went by the GM dealership, inquired about the vehicle and did a test drive. When I presented my tradein (a 3 year old vehicle, low mileage and clear title) they offered me $12,000 less than BOTH foreign car dealerships - this on top of the fact that their vehicle was at least $5,000 more. My husband and I walked away.

Needless to say, the next day we were in a foreign vehicle. The GM guy even waited a week and called back - guess he thought we were desperate to buy his inferior quality, higher priced vehicle. He and his manager were actually shocked that we bought from someplace else the day after.

American automakers have made their beds, continuing to act as if they are the only game in town. Why are they so shocked now when they have to lie in it? They've been neglecting the needs and wants of the american consumer for many years. I don't know anyone under the age of 35 that willingly wants to acquire an American made vehicle. Our dream cars are made by Honda, Toyota, Lexus, BMW....

Unfortunately I believe it is too late - just wish President Obama hadn't wasted my tax dollars throwing it down the drain at these American auto makers that need to be let go. This is capitalism - LET THEM FAIL. It was their business decisions!

[golfered2]

Obama listed all the people he stood behind when he said Chrysler was going to file Chapter 11 Bankruptcy and he stated he did not stand behind the greedy bondholders. I guess he forgot about the dealers as he certainly did not stand behind the dealers. I guess most dealers do not employ UAW workers. Dealers also made a profit showing that an organization can make a profit witout employing UAW workers!!!! GET RID OF THE UAW!!!!