Chrysler/GM Dealerships

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BOSS

BOSS

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Oct 31, 2002
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Just announced, Chrysler will close 789 dealerships in the next 30 days...

Oh crap.......

Added... GM plans to close 2600 dealerships through the summer...
 
How can they close a dealership if it is independantly owned? Or do they have so many that are "owned" by them (the dealers keep Chrysler's vehicles on their lot - type of thing?)
We have a GM dealer here that pays for every car on his lot - always has. If you want a specific vehicle, he'll look for it, buy it, then sell it to you but he owns every vehicle on the lot outright. Granted he only has maybe 15 cars and 10 trucks on the lot to sell but he isn't paying GM while they're sitting on the lot.
Anyone know "how" a dealership works?
There was a couple of brothers in NJ, I think, who were crabbing that they were a 60 year dealer and they were being closed. I could only imagine that they don't actually "own" the dealership.
 
They terminate the sales agreement but that doesn't always mean the dealership will close. It does mean they can't sell that make vehicle new anymore but many also sell other makes and do other types of work such as mechanical or body.
 
kind of dumb to close an outlet that is buying your vehicles and reselling them. Certainly if a dealer has X amount of vehicles on his lot, he's making payments to the company on those vehicles (that's what I was told once regarding the local dealer's sale) Now if the dealership isn't making payments on the vehicles they have on their lot and they "owe" the company, then the company should shut them off....
 
I could be wrong, but I don't think dealerships buy the new vehicles on their lots outright. Rather they pay for them when they actually sell. I know that the dealerships around here are suffering. A Ford dealership here had a major fire in their service bay on Christmas Eve and they've never repaired/reopened it. And other workers are getting laid off....
 
This is just SO SAD! All the business owners and their employees out of work...it's almost overwhelming. Especially when you watch the unemployment numbers continue to climb and business after business continue to shut down...even those that have been around for a long time.

I just want to say that I LOOOOOOVE my Chrysler Town and Country Mini-van and would pick it over my Honda Accord if I had to choose.
 
Love my Town & Country Stow N Go (so does the dog) and I would buy one again......
 
the market should decide which dealership survives and which doesn't.


This is analogous to Obama telling FTD or TF to close 5000 flower shops.

I think this is a govt and auto union initiative. I can't figure out how or why but.............. it has to be.

Mark, sorry, but this is political and it stinks!
 
I think Joe is correct, in a sort of fashion.
Each dealership is "licensed" to carry the lines that are necessary to saturate the markeplace in which they are located, and each are required to post bonds, to protect inventory from the manufacturers, that is held in trust, until sold, scanned by VIN #, and the appropriate funds transferred immediately to the money department.
It IS political, in a sense, when the CHIEF says, get your ducks in a row, or we WON'T help you!!
Here, in Canada, the unions are crybabies, the workers are amazing, and the unions need a huge kick in the arse, if they "think" this ain't the beginning of the end, towards the "new horizon"......
 
We got a couple dealers up this way that got notice that they are being dropped. One dealer a Jeep dealer in Barre said he has 8 new Jeeps on his lot right now come next month when this goes into affect he will not be able to buy parts from jeep or perform service work also any of these new Jeeps that remain will have to be sold by him as used. His dealership also sells Ford and one other line of vehicles but Jeep made up 25 percent of his business.
 
we have one dealer closing that only sells 150 new vehicles/year. the one staying open sells 1500/year

as for Gm - 3 out of 4 in our 4 local towns have closed in the past 1.5 years. IF the last one closes you will have to drive 30-35 miles for service
 
It does not make business sense to me. People will get piss8ed off if they have to travel far to get their vehicle warrantee or service.

How could it cost money to GM/Chrysler to leave those lots open or garage to work on thier vehicles.


Imagine FTD/TF/800 Decided to cancel all our membership and keep the all OG to fill their orders...would'nt that be a hoot!!!!!!!!!!


In my opinion they should have let GM and Chrysler go bankcrupt and start fresh.

Why is GM and Chrysler the only two Auto makers looking for money/help?
Are they careless with money!!!!!!!!!!!!

Luc
 
Luc said:
Imagine FTD/TF/800 Decided to cancel all our membership and keep the all OG to fill their orders...would'nt that be a hoot!!!!!!!!!!
Click to expand...
My wildest dream come true ;) :ssmoke
 
I did not think I was the only one who noticed that GM, Chrysler, and their related companies were the ones asking for bailout money. Curious.......isn't it?
 
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