Teacher resources

Go to Teachers area for more updates

Lessons & Classroom Activities

Resources by grade level

Blogs

Student resources

Go to Students area for more updates

Interactive features

Online Reference Guides

Parent resources

Go to Parents area for more updates

Yak's Corner is brought to you by Michigan K.I.D.S., The Detroit News and Detroit Free Press educational nonprofit, with support from readers.

Front Page Talking Points
FOR THE WEEK OF JUNE 15, 2009

GM, Chrysler roll in new directions without hundreds of dealers

frontpageactionpoints.gif

1.gifLook for coverage of dealers facing a shutdown in your community, region or state. Are there comments about an impact beyond lost jobs?

2.gifIs this new era for auto companies evident in the business section and in car dealers' ads? What headlines, sales promotions or featured vehicles are signs of change?

3.gifReaders, columnists and editorial writers have strong, varied feelings about what's happening in the auto industry. Find two different views about federal aid, the United Auto Workers union or company executives and tell which is closest to your thoughts.

It's the end of the road for nearly 1,900 vehicle dealers in suburbs, towns and cities across America. General Motors and Chrysler are forcing them to close as each automaker struggles to survive by shrinking. The idea is trim costly, inefficient networks of dealers that include multiple locations within 10 to 20 miles in some areas.

GM, which is reorganizing with federal help and bankruptcy court protection, is phasing out 1,100 of its 4,700 dealerships as part of cutbacks that include dropping Pontiac, Hummer and Saturn from its model lineup. Chrysler, being purchased by the Italian automaker Fiat, closed more than 780 of its 3,200 sales outlets on short notice this month.

The impact on communities will be significant -- eliminating a rough average of 50 jobs at each site, reducing business for local suppliers of goods and services, and hurting commercial real estate markets. Even Little League teams, charities and other groups will feel a pinch as dealer donations stop. "These are big names in local areas and having them shut down has a huge ripple effect in communities," says Congressman Dan Maffei of Syracuse, N.Y. "Not only is it impacting the dealers, it's impacting everyone around them."

Dealer says: "After three generations in the business, it's hard to feel like you're not a failure. God didn't leave me, but GM did." -- Bobby Kaltenbaugh, Chevrolet dealer in Sandy Lake, Pa.

Lawmaker says: "I want to know why you're not taking care of people who spent 70 years and generations selling your cars." -- Rep. Mike Doyle, D-Pa., at House appearance by auto executives

Auto executive says: "Today's automotive industry cannot support the number of dealers currently in the marketplace." -- James Press, Chrysler president


Front Page Talking Points is written by Felix Grabowski and Alan Stamm for NIEonline.com, Copyright 2013
We welcome comments or suggestions for future topics: Click here to Comment

Front Page Talking Points Archive

Federal safety board urges tougher drinking-and-driving cutoff limit to match other nations

Northeast braces for noisy invasion: Flying cicada bugs return after hiding for 17 years

U.S. military prison at Guantanamo, Cuba, remains a tricky problem for President Obama

Doctors warn about serious health risks from 'The Cinnamon Challenge' video craze

Earth Day on April 22 focuses attention on how we can protect the natural environment

Thousands of past players take on the National Football League over brain injuries

North Korean missile threats create concern and U.S. show of military force

South Africa reflects on the huge legacy of Nelson Mandela, hospitalized at 94

They come from space: NASA seeks money to spot and deflect risks from large asteroids

This 'March Madness' basketball tournament season is special – the 75th in history

Complete archive