To: D LEE who wrote (1321 ) 12/24/1997 7:13:00 AM From: D LEE Read Replies (2) | Respond to of 6654
[post#2] I Believe this is what's happening with CVIA**** Since Wayne J's reply #1212 I have put a collection of your thoughts in the previous post. In this post, is:how I see all those pieces fitting together: Jack Arnold is creating a framework much like that of the Mc Donald Restaurant chain, except the oil is no longer for cooking and the road will eat the tires. He is offering economies of scale, hence more profitability, to privately owned mom & pop tire companies who would join in by exclusively operating under the shell presently known as CVIA. Their responsibilities will be: - to become somewhat uniform in appearance, and in the way they conduct their business. In this they will become recognized as "affiliated service areas" for the public to get used to and become comfortable with. (CVIA's trump card) This will give all the service areas greater public exposure and increase the volume of business each of the separate companies are now experiencing. (For minor profits, CVIA may involve itself in contracting or managing the minor and necessary cosmetic alterations in each companies appearance, but that is neither here nor there.) Participating companies will benefit from the newfound high volume buying power they will give to CVIA since they all will agree to purchase their products exclusively from CVIA. CVIA will retain a good portion of the extra discount as earnings because of the vastly greater buying position it will have due to volume . (This is the key.) The value of each of the companies will increase, but In the interest of simplicity, it may be unnecessary to think "merger" as in # of shares outstanding or any need of "acquisition" etc. The companies could remain privately owned franchises, unless at some time it is mutually beneficial to both the present owner and CVIA for any complete or partial buy-outs to occur. I think the mysterious company of specialists referred to as "WOTD" is indeed, a growing group of mom & pop company owners who are deciding whether to join in and become a part of this. They are specialists in their field. And, unless CVIA and these specialists don't think of a better one, this will be the name everyone concerned will be operating under. (this could be wrong, but it's simple enough and only as complicated as necessary.) What ever Jack Arnold is, it seems to me, his personality is such that he'll get a "rush" out of "pulling it off". That's really all that counts. I see enough truth and simplicity in the above reasoning so it should work fine. Though he probably will do OK with this entirely on his own, there are times when Jack may feel he is loosing it. Then someone will say something that makes him feel like a king. He'll go back to work! Smaller things have allowed bigger things to happen! Your a great bunch of guys and I get a kick out of this "corny thread" in a very neat way. It's very appropriately unusual. I think Jack Arnold will remember what's happening here as pretty good times until money doesn't matter any more! Special congratulations, Wayne J. Dave Merry Christmas All!