Learn About Your New Investment - Part Four

Published Friday, December 26, 2008
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As we've demonstrated, learning about investments can be fun. I've even stopped driving my Toyota hybrid to support a GM product. Okay, so I haven't gone that far, but I can admit to being somewhat enthused about the prospect of owning a part of General Motors along with millions of other Americans. It's for that reason that we're continuing our series on our new investment. Yay for us!

An interesting component to how the auto industry is facing so many problems lies with the dealerships. Interestingly it isn't the actions of the dealers or the slow sales causing a log jam for the most part, but rather state franchise laws that won't allow obsolete brands or unsuccessful genres to shut down without a looooong process.

Indeed, many dealers have had trouble killing off some of the weaker brands like Saturn because of state franchise laws getting in the way. Sure, someone could knock out Saturn but it can't be done without huge costs being slapped on the individual dealers. The result? Dealerships hold on to brands that aren't moving for fear of being dinged by the huge costs. Despite losing money on these brands, the dealers hold on to them because it's better than paying the cost.$0

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