HolyCoast: The Racial Politics of the Auto Dealer Closings
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Thursday, July 22, 2010

The Racial Politics of the Auto Dealer Closings

It's becoming clearer that race plays a huge role in the "post-racial" presidency of Barack Obama.  It even had a role in the decisions on which GM and Chrysler dealers to close:
The Obama administration, already under fire for unprecedented allegations of racial bias, faces a new bias claim from a most unlikely source: one of the administration's own inspectors general.

Decisions on which car dealerships to close as part of the auto industry bailout -- closures the Obama administration forced on General Motors and Chrysler -- were based in part on race and gender, according to a report by Troubled Asset Relief Program Special Inspector General Neal M. Barofsky.


[D]ealerships were retained because they were recently appointed, were key wholesale parts dealers, or were minority- or woman-owned dealerships. [Emphasis added.]
Thus, to meet numbers forced on them by the Obama administration, General Motors and Chrysler were forced to shutter other, potentially more viable, dealerships. The livelihood of potentially tens of thousands of families was thus eliminated simply because their dealerships were not minority- or woman-owned.

As has been widely reported, the Inspector General's study skewered the Obama Gang for strong-arming the companies into closing 2,000 dealerships, costing an estimated 100,000 people their jobs during a recession.

But the news media has ignored key elements of Barofsky's report -- elements that are far more damaging, if possible, to Obama. As we reported earlier in the week, a top Obama official, manufacturing czar and "Auto Team" leader Ron Bloom admitted that the dealerships could have been kept open, saving those jobs, "but that doing so would have been inconsistent with the President's mandate for 'shared sacrifice.'"
Keep reading the you'll learn why so many rural dealership were closed while urban dealership were kept open. Politics? You bet.

And throwing 100,000 people out of work didn't save the car companies a dime and may have actually cost them money because of the perception of a failing company. It was all for show.

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