Email L. Henry Platt, Jr.
AN EASY WAY TO ALLOW MUCH MORE OF THE AUTOMOBILE INDUSTRY TO SURVIVE
This is a simple solution: Allow Dealers with sufficient credit to continue to sell and service new automobiles and trucks provided that the dealer is able to arrange his own floor plan. There are many dealers who are able to floor plan their own vehicles and parts. Plenty of these dealers will jump at the chance to do this! So, why haven't they?
First, the man in charge didn't look for solutions; then nobody considered my suggestion. [Of course, if when you read this, dealers have already begun to floor plan their own vehicles, then they did take my suggestion after 6:00 PM, June 4, 2009.]
**For those unfamiliar with industry terms, the term "floor plan" means somebody is lending money to the dealer to buy the vehicles he has for sale on his lot. Used as a verb, "floor plan" means that the lender is (usually by contract) all or most of the money to pay for vehicles when they are delivered to the dealer. GM and Chrysler do not have enough cash to floor plan all the cars they did in the past.
If dealers slated for closure were permitted to find credit to floor plan on their own, many successful dealerships could remain open.
© L. Henry Platt, Jr.