300 Dealers Sue

I've been listening to the news about the car dealers who have been given three weeks notice that they will be losing their dealerships.

http://www.chicagotribune.com/business/dow-chrysler-dealers-suit-may19,0,6471245.story

I heard one dealer last night tell his story that they were supposed to cut the bottom 14% of the car dealers, but he is actually in the top 2% and his franchise is being taken away and given to the dealer down the street. He will be getting no compensation for this transaction.

This morning I heard a similar story. A dealer in Florida who was just forced by the franchise to do a million dollars of upgrades to his dealership, will be losing his franchise in three weeks and it will be given to the dealer down the street.

His inventory won't be repurchased, and he won't be compensated for the money he had to borrow to do the upgrades.

I'm going to be doing more research on this issue, but it sounds to me like capitalism is in danger of dying.

Of course, bankruptcy courts have a lot of latitude, but to take from one to give to another... well that sounds like a different type of government to me.

What do you think?