Dealers closed for politics?

Numerous weblogs have now charged President Obama with forcing the closure of Chrysler dealers who contributed to the Republican Party.

Nate Silver noted that, since 92% of dealerships remaining open contributed to the Republicans, it should not be surprising that Republicans dominate the dealerships being closed. Past Automotive News polls have shown that an overwhelming majority of car dealer owners are Republican, as well.

The Chair of the new Chrysler Group was a member of G.W. Bush’s election organization and has consistently contributed to Republicans running for Congress and the White House. 

So far, no analysis has examined the politics of the dealers who remain open vs those who are closing. Chrysler did post the rationale, along with supporting facts, such as the fact that the closed dealers, as a group, account for a very small proportion of the company’s new car sales. 

Before the government got involved with Chrysler, the company had discussed the need to reduce the number of dealers.

It is possible that there was a political motivation behind the list, which was according to all accounts generated within Chrysler, but that has yet to be demonstrated. No reputable group, including NADA, has yet made that accusation.