How stupid can people be, you ask?
Oregon’s struggling auto dealers plan to ask the Legislature to impose “blue laws” prohibiting car sales on Sunday.
The day off would help them cut costs during an economic downturn that has already put 19 Oregon dealerships out of business this year. Nationally, sales of domestic cars declined more than 35 percent in 2008.
Greg Remensperger, executive vice president of the Oregon Automobile Dealers Association, told The Oregonian newspaper his members strongly favor the measure.
I swear that it must be that that they are so heavily regulated and deal with the state government so often that they are numb to the fact that if they get these laws now, they will still be stuck with them when times get good again.
Why do they need a law?
Why don’t the OADA just agree to shut their dealerships down on Sundays for a six month trial period?
Is there some sort of law in Oregon that I’ve never heard about that actually forces car dealerships to be open on Sundays?
Why is it the first place these people run to is government?
The car dealerships are probably afraid that someone will bring a lawsuit for illegal sales-week fixing if they do it among themselves.
I know the company I used to work for was terrified (TERRIFIED) of any potential for being accused of collusion to set prices or anything of that sort. Basically unless you were actively buying or selling something from or to a competitor you were NOT TO TALK to that competitor for any reason. From talking to some of the older salesmen, that sort of thing used to be so common (setting prices, agreeing on “exclusive sale zones” etc) that it was considered normal. With increased scrutiny however, it’s a big no-no. Could be this is what the dealerships are doing as EMDFL said.
That or the business is so cutthroat that they are afraid some dealers will just continue to do sales on Sundays in order to get all the Sunday shoppers who have no where else to go. Make it a law and any dealer who tries to suck up all the business on a Sunday will be in big trouble.
As a Portland area resident, I can just drive 20 minutes to Vancouver WA. They’ll sell me a car on Sunday and I don’t have to pay WA sales tax.
I’d like to know how many car dealers go out of business in a typical year. Seems to me that you’re always seeing one (especially small ones) going out of business. It’s only one step away from those oriental rug companies that seem to be opened for the sole purpose of having a going-out-of-business sale.
I’m sure the numbers are higher, but since the news has never reported on how much of an increase there has been in closures versus previous years (just on the total number) I’m equally sure that’s it’s not all that terribly much more.
The dealerships ARE.NOT.SELLING.CARS, period. They may only now be grasping the idea that in uncertain times, the purchase of a new car is NEVER a necessity for the buyer. If someone needs to replace their car, they will probably buy used.
In Phoenix, AZ a significant fraction of ALL the dealerships have gone out of business, or furloughed all their people, etc.
The auto industry itself is to be faulted for not having the foresight to have a business plan for surviving a severe economic slowdown. Their business model seems predicated on forever good times, and forever credit availability, neither of which is the case now.
It’s strange that the recent bailout hearings on the Hill failed to focus on this failure, so it seems that this basic problem of no flexibility in marketing will continue to dog the industry.
The industry needs to be reworked from top to bottom, and not just paring down union pay and benefits, either. As a taxpayer, I demand that this subsidized industry produce a more flexible business plan that will work regardless of tight money or not.