The difference between private-sector decisions on business consolidation and those under government supervision gets exposed in a portion of Neil Barofsky’s audit of the government-driven closures of GM and Chrysler auto dealerships during the $62 billion bailout. There may be a question of whether the automakers needed to consolidate in order to shed poorly performing dealerships at all, but we’ll get back to that. The plan to consolidate dealerships that resulted from the push by the car czar and TARP used rational, objective measures to select the target outlets. [...] Read the rest »
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