Hi, Yupette,
Now that the Artisphere's construction has been funded by tax dollars the wealthy performing arts (and other) groups will begin using the Artisphere for fund-raising. First major event is a pre-opening Gala in early October.
There was no significant fund raising to contribute to the Artisphere's construction by the wealthy groups that will use the Artisphere (which is managed by Arlington County). Several million dollars were stripped from the County's pay-as-you go accounts to fund Artisphere construction.
2100
Saturday
Wednesday
Time for a Change of Leadership in Arlington
Hi Yupette,
What does the conflict over the failed 'change of government" petition indicate? That it's time for an across-the-board change of leadership in Arlington. The people who are in various positions of authority have just been around too long.
Donna - 22205
What does the conflict over the failed 'change of government" petition indicate? That it's time for an across-the-board change of leadership in Arlington. The people who are in various positions of authority have just been around too long.
Donna - 22205
Tuesday
Inside The Chrysler Dealer Arbitrations
The Chrysler dealer arbitrations have been completed. Out of 108 arbitration hearings Chrysler maintains they won 76 of the decisions to 32 in their favor of terminated dealers. 32 out of the 789 franchises initially rejected have now received a “Letter of Intent,” which still makes th dealer subject to the nefarious whims of Chrysler when it comes to re-establishing their business. Word has it that Chrysler has employed unscrupulous tactics with their jilted dealers, leading to their overwhelming won/loss ratio.
On the heels of the final Chrysler arbitration numbers comes the Special Investigator General Troubled Asset Relief Program (SIGTARP) report. This is the government’s own audit of the use of TARP funds to bailout Chrysler and GM. The report castigates the Auto Task Force, led by Ron Bloom, Steve Rattner, and Steve Girsky for forcing the terminations. It seems the Task Force wanted to impose the “Toyota Throughput Model” ON GM and Chrysler. The OEMs might not have had any choice in cutting down their franchise count. After all Rick Wagoner was fired for not submitting an aggressive enough restructuring plan after taking TARP money from the Bush administration in December 2008. There isn’t enough space to analyze SIGTARP here. Others have already done so and the document speaks for itself. There is no doubt it would have been quite helpful to dealers locked in arbitration with their OEMs, had it been available at the time.
How Chrysler, in particular, went about their termination process is telling. Chrysler aggressively pursued arbitration, probably at the behest of CEO Sergio Marchionne, who thinks the dealers work for him. GM, on the other hand, wasn’t as aggressive as new CEO Ed Whitacre quickly figured out who his customers are and worked to restore many dealers quickly.
We talked to Carl Woodward, CPA of Woodward and Associates, Inc. Mr. Woodward has 38 years experience specializing in auto business accounting serving hundreds of auto dealers. He also has actual dealer experience as a partner/owner. Mr. Woodard participated in about twenty dealer arbitration cases on behalf of dealers. We have also spoken with dealers, some who won and some who lost their Chrysler arbitration hearings. A common theme arose from these conversations. Many of the Chrysler terminations made no sense at all. They were made based on incorrect data, incorrect interpretation of data, and quite possibly out of retribution toward dealers who had stood up for themselves in the past.
Chrysler typically fought against motions to transcribe arbitration proceedings. It seems they routinely took advantage of the lack of auto business and financial experience of some of the arbitration judges. Chrysler must not have wanted a record to be available when they took different sides of an issue depending on who the arbitration judge happened to be. For example, Chrysler might take a position that LIFO counts as working capital if that argument works in their favor, supporting a dealer they retained over one who was terminated. In another situation they might argue that LIFO reserve does NOT count as working capital if that argument supported the termination of a dealer. If the arbitration judge didn’t know the difference, and the dealer wasn’t knowledgeable and well prepared, this worked out in favor of Chrysler. As a practical matter, LIFO reserve DOES count as working capital. Chrysler must not have wanted a record to be available. Why have to deal with precedent if it is inconvenient?
In at least one instance, Chrysler retained a dealer with negative working capital over one with many times Chrysler’s own guide formula. Chrysler got caught on it when the dealer was well prepared with a knowledgeable attorney and CPA experienced in these matters.
In my own case, I have been in and around the auto business for 40 years. Until recently I have NEVER heard from any manufacturer any assertion that fewer dealers sell more vehicles. A spot check of Chrysler’s Alpha – Genesis project revealed interesting results. The project involves consolidating all of the Chrysler – Jeep - Dodge – Dodge Truck franchises under one roof. Imagine a market that has a 3 dealerships, one for Chrysler, Dodge/Dodge Truck, and Jeep. Now you put them all in one location. Yes, it’s probably good for the dealer who ends up with the 4 franchises under one roof, unless he/she had to boost overhead substantially to accomplish it. But I have yet to find an instance where overall Chrysler market share increases under this circumstance. My research is admittedly anecdotal. But others I have spoken to, including Carl Woodward and various dealers, are telling me the same thing. Even a couple of “factory people” have made the same observation without agreeing to attribution. When challenged in arbitration hearings to prove that Alpha – Genesis has been proven to achieve the stronger market penetration Chrysler says it desperately needs, they have, to my knowledge, not been able to provide any data to support their assertion. Might their entire premise to terminate dealers be based on a false premise?
Tammy Darvish, co-leader of the Committee to Restore Dealer Rights and vice president of Darcars Automotive Group in Silver Spring, MD weighed in: "It is curious that there is no accountability for the gross error in judgment on behalf of the Auto Task Force in addition to those that we believe committed perjury in Federal Bankruptcy court and in Congressional Hearings. Raising your right hand and swearing to tell the truth, the whole truth and then doing everything else but is unconscionable."
There is no doubt that it has been better for the economy to have a relatively orderly restructuring of GM and Chrysler instead of a disorderly liquidation. But the motives and tactics of Chrysler, in particular, are repugnant at best.
Addenda: We bloggers on Marketplace July 19, 2010
On the heels of the final Chrysler arbitration numbers comes the Special Investigator General Troubled Asset Relief Program (SIGTARP) report. This is the government’s own audit of the use of TARP funds to bailout Chrysler and GM. The report castigates the Auto Task Force, led by Ron Bloom, Steve Rattner, and Steve Girsky for forcing the terminations. It seems the Task Force wanted to impose the “Toyota Throughput Model” ON GM and Chrysler. The OEMs might not have had any choice in cutting down their franchise count. After all Rick Wagoner was fired for not submitting an aggressive enough restructuring plan after taking TARP money from the Bush administration in December 2008. There isn’t enough space to analyze SIGTARP here. Others have already done so and the document speaks for itself. There is no doubt it would have been quite helpful to dealers locked in arbitration with their OEMs, had it been available at the time.
How Chrysler, in particular, went about their termination process is telling. Chrysler aggressively pursued arbitration, probably at the behest of CEO Sergio Marchionne, who thinks the dealers work for him. GM, on the other hand, wasn’t as aggressive as new CEO Ed Whitacre quickly figured out who his customers are and worked to restore many dealers quickly.
We talked to Carl Woodward, CPA of Woodward and Associates, Inc. Mr. Woodward has 38 years experience specializing in auto business accounting serving hundreds of auto dealers. He also has actual dealer experience as a partner/owner. Mr. Woodard participated in about twenty dealer arbitration cases on behalf of dealers. We have also spoken with dealers, some who won and some who lost their Chrysler arbitration hearings. A common theme arose from these conversations. Many of the Chrysler terminations made no sense at all. They were made based on incorrect data, incorrect interpretation of data, and quite possibly out of retribution toward dealers who had stood up for themselves in the past.
Chrysler typically fought against motions to transcribe arbitration proceedings. It seems they routinely took advantage of the lack of auto business and financial experience of some of the arbitration judges. Chrysler must not have wanted a record to be available when they took different sides of an issue depending on who the arbitration judge happened to be. For example, Chrysler might take a position that LIFO counts as working capital if that argument works in their favor, supporting a dealer they retained over one who was terminated. In another situation they might argue that LIFO reserve does NOT count as working capital if that argument supported the termination of a dealer. If the arbitration judge didn’t know the difference, and the dealer wasn’t knowledgeable and well prepared, this worked out in favor of Chrysler. As a practical matter, LIFO reserve DOES count as working capital. Chrysler must not have wanted a record to be available. Why have to deal with precedent if it is inconvenient?
In at least one instance, Chrysler retained a dealer with negative working capital over one with many times Chrysler’s own guide formula. Chrysler got caught on it when the dealer was well prepared with a knowledgeable attorney and CPA experienced in these matters.
In my own case, I have been in and around the auto business for 40 years. Until recently I have NEVER heard from any manufacturer any assertion that fewer dealers sell more vehicles. A spot check of Chrysler’s Alpha – Genesis project revealed interesting results. The project involves consolidating all of the Chrysler – Jeep - Dodge – Dodge Truck franchises under one roof. Imagine a market that has a 3 dealerships, one for Chrysler, Dodge/Dodge Truck, and Jeep. Now you put them all in one location. Yes, it’s probably good for the dealer who ends up with the 4 franchises under one roof, unless he/she had to boost overhead substantially to accomplish it. But I have yet to find an instance where overall Chrysler market share increases under this circumstance. My research is admittedly anecdotal. But others I have spoken to, including Carl Woodward and various dealers, are telling me the same thing. Even a couple of “factory people” have made the same observation without agreeing to attribution. When challenged in arbitration hearings to prove that Alpha – Genesis has been proven to achieve the stronger market penetration Chrysler says it desperately needs, they have, to my knowledge, not been able to provide any data to support their assertion. Might their entire premise to terminate dealers be based on a false premise?
Tammy Darvish, co-leader of the Committee to Restore Dealer Rights and vice president of Darcars Automotive Group in Silver Spring, MD weighed in: "It is curious that there is no accountability for the gross error in judgment on behalf of the Auto Task Force in addition to those that we believe committed perjury in Federal Bankruptcy court and in Congressional Hearings. Raising your right hand and swearing to tell the truth, the whole truth and then doing everything else but is unconscionable."
There is no doubt that it has been better for the economy to have a relatively orderly restructuring of GM and Chrysler instead of a disorderly liquidation. But the motives and tactics of Chrysler, in particular, are repugnant at best.
Addenda: We bloggers on Marketplace July 19, 2010
Monday
Arlington Emergency Responders Unprepared for Severe Weather
Hey Yupette,
FYI, Arlington's emergency responders were unprepared for yesterday's severe weather in North Arlington.
Same people who circulated the COG petition.
Carole - 22207
FYI, Arlington's emergency responders were unprepared for yesterday's severe weather in North Arlington.
Same people who circulated the COG petition.
Carole - 22207
Saturday
Local News Media Are Anti-Environment
Hello, Yupette,
Anyone see any compelling evidence that the local news media are not anti-environment?
Terri
Anyone see any compelling evidence that the local news media are not anti-environment?
Terri
Monday
New Elementary School - Public / Private Redevelopment of Public Land?
Yupette, it looks like Key School or another public parcel may be redeveloped into a new elementary school with expensive condos sharing the site.
Wednesday
County Board Will Increase Open Space Via Tear-Downs
Hi Yupette,
Check out the last item on the County Board's published agenda last night - the purchase and tear-down of a commercial property in Nauck to create open space. Based on the County Board's comments it's obvious that's the way they'll go to create open space in the future.
Dennis
Check out the last item on the County Board's published agenda last night - the purchase and tear-down of a commercial property in Nauck to create open space. Based on the County Board's comments it's obvious that's the way they'll go to create open space in the future.
Dennis
Monday
Capacity limits?!
If you thought you'd heard it all, well ... is this a harbinger of more widespread problems? The Yomiuri Shimbun today (July 12) notes that Nissan is halting 4 assembly lines because it can't get shipments of its ECU (engine control unit) from Hitachi, whose Hitachi Automotive Systems subsidiary can't get shipments from the "fab" that actually makes the chip "because they are too busy." Automotive News adds that Hitachi ships the same ECU to two other unnamed makers, who will also face shortages and perforce must stop their assembly lines.
Now this may be a short-term, random incident. But the context (viz. the Yomiuri story) is booming demand for semiconductors in many sectors. At the moment the US auto market is anything but booming. However, suppliers face tremendous pressure to control costs and that means they will be very cautious about building up inventory and rehiring workers.
So maybe it's just as well that demand hasn't surged.
Now this may be a short-term, random incident. But the context (viz. the Yomiuri story) is booming demand for semiconductors in many sectors. At the moment the US auto market is anything but booming. However, suppliers face tremendous pressure to control costs and that means they will be very cautious about building up inventory and rehiring workers.
So maybe it's just as well that demand hasn't surged.
Mike Smitka
Christmas in July Continues - July 13th
Hi Yupette,
Christmas in July County Board meeting continues July 13th starting at 6:30 PM. Agenda includes gifts for Arlington's wealthy performing arts groups, Chris Zimmerman's $36 million present to WMATA for a new Rosslyn Metro station, and the re-redevelopment of Crystal City.
Donna
Christmas in July County Board meeting continues July 13th starting at 6:30 PM. Agenda includes gifts for Arlington's wealthy performing arts groups, Chris Zimmerman's $36 million present to WMATA for a new Rosslyn Metro station, and the re-redevelopment of Crystal City.
Donna
Saturday
Zimmerman, County Board, Steam EFC Residents
Want to see proof positive why Chris Zimmerman should not be re-elected? Check out the 4 hours he and the County Board kept EFC residents waiting for the EFC area plan to be heard while the CB micro-managed the outdoor restaurant seating for one of Fisette's pet restaurant owners.
Friday
July 10th County Board Meeting - Christmas in July for EFC Developers
Hello, Yupette,
What is Zimmerman's East Falls Church redevelopment scheme all about? It's Christmas in July for the County Board's pet developers who will receive hundreds of millions of dollars in proffers, bonus density, and tax shelters for building another Clarendon. It's another ego trip for mega-development maniac Chris Zimmerman. It's another dumb growth redevelopment that only a Yuptard could love - and they do. How much more of this dumb growth do we have to endure?
Mary
What is Zimmerman's East Falls Church redevelopment scheme all about? It's Christmas in July for the County Board's pet developers who will receive hundreds of millions of dollars in proffers, bonus density, and tax shelters for building another Clarendon. It's another ego trip for mega-development maniac Chris Zimmerman. It's another dumb growth redevelopment that only a Yuptard could love - and they do. How much more of this dumb growth do we have to endure?
Mary
Monday
July 10th County Board Meeting to be "Christmas in July" for CB's Pet People, Projects
Hi, Yupette,
Can we have a thread about the upcoming "Christmas in July" County Board meeting and all the tax $$$$$ the County Board that was so fiscally challenged six months ago is going to hand out to its favorite people in return for votes?
Jill
Can we have a thread about the upcoming "Christmas in July" County Board meeting and all the tax $$$$$ the County Board that was so fiscally challenged six months ago is going to hand out to its favorite people in return for votes?
Jill
Sunday
County Board's "Christmas in July" Agenda Includes Heavily Arming Arlington Police and Deputies
Hello Yupette,
I read the County Board's "Christmas in July" agenda for the July 10th meeting and was appalled to see they are using law enforcement grants from the Justice Department to heavily arm the police and sheriff's deputies. This in a county that in the last 6 months has had 2 unsolved murders and 2 incidents where homeless persons died after altercations with the Arlington police, none of these persons was armed. Why do the police have to carry even more powerful handguns than they already carry? Why do sheriff's deputies have to carry assault rifles? What is going on in this County?
Cindy 22204
I read the County Board's "Christmas in July" agenda for the July 10th meeting and was appalled to see they are using law enforcement grants from the Justice Department to heavily arm the police and sheriff's deputies. This in a county that in the last 6 months has had 2 unsolved murders and 2 incidents where homeless persons died after altercations with the Arlington police, none of these persons was armed. Why do the police have to carry even more powerful handguns than they already carry? Why do sheriff's deputies have to carry assault rifles? What is going on in this County?
Cindy 22204
Friday
Rolling Thunder Terrorists Are Back
Yupette, the f-ing Rolling Thunder terrorists are back this weekend. Doing a sequel to their Memorial Day psywar operation against local Patriots - active duty military, reserve military, and defense workers who Rolling Thunder and their facilitators, the Neo-Cons, Freepers, motorcycle gangs, KKK, etc., deem to be among the inhabitants of a "socialist republic". If you live on or near a major interstate or arterial, be aware that these a-holes are going to try to make this July 4th weekend into Daytona Bike Week.
Jeff
Jeff
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