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Chrysler to shut down dealers?

07/25/2007, 8:25 AM

By Andrew Ganz

Chrysler is apparently issuing warnings to some of its weaker-performing dealerships that if they don’t shape up within the next six months they will be shut down. Forty to 50 dealerships in the Great Lakes area received letters from the automaker earlier this month.

The dealerships had not been meeting sales goals, according to The Wall Street Journal’s website. The dealerships were given 180 days to shape up, or else Chrysler will begin the process of terminating the franchise. Chrysler is looking to do the same with other dealerships throughout the country, too.

Chrysler has 3,700 dealerships in the United States.

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07/25, 8:34 AM

posted by:

RicardoHead

So how does this work?

Chrysler says to the dealers “you must sell **** to people who want chocolate, and if you don’t, we wont provide you with any more **** to sell them.”
.
Big threat.

07/25, 9:44 AM

posted by:

LamborghiniZ

God what an awful situation to be in. How can they “up their performance” when they are given **** HEAP products to sell? They’re doomed.

07/25, 9:52 AM

posted by:

Bryce

It seems like it’s an effort to eliminate redundant franchises. If output warranted their existence, shut-downs wouldn’t be necessary. It was the fault of the manufacturer for creating so many franchises, now they’re taking them back. Don’t know anything about franchise rules, but I have a good feeling that the owners of those dealerships understand that the privelege can be taken away.

Wish they’d do that with Chevy dealers.

07/25, 10:20 AM

posted by:

Piablo

LOL! “They’re doomed” – LamboZ, maybe the sales guys should withdraw from the dealership!?

Don’t feel too bad for these guys. A good sales person can sell anything. A good dealership, can move their vehicles. Chrysler products aren’t all that bad, just not great. Time to actually ’sell’. There are other factors that keep people from going to dealerships, like a shady service department, rude sales people, and basic reputation. When the going gets tough, the tough get going.

07/25, 11:08 AM

posted by:

jJayC08

I hope to see the dealerships shapen up some… I haven’t been to a Chrysler dealership yet, so I don’t know if there is some lingering bad experience with them…

07/25, 12:31 PM

posted by:

LP640

just shut them all down its not as if they’re generating any profit

07/25, 12:34 PM

posted by:

miket

It makes sense to eliminate redundant dealerships. From the dealership’s standpoint (of course).

With multiple dealerships of the same brand located close by, you have the dealers always trying to 1-up the other guy. To reduce overhead they end up skimping on paying staff what they should. A well paid staff in a good working environment will have a low turnover rate, witch provides the consumer with good service, and a knowledgeable staff.

I have seen this first hand with local Ford dealers, who change service managers and sales guys and techs constantly. Ford has 5 dealerships within about a half hour of each other in very (very) rural upstate NY.

How can dealerships make a decent profit when they are competing with the guy down the road for the same car sale?

A model with less dealerships has worked well for both Toyota and Honda, by having dealerships more spread out they can make a fair profit, and continue to grow. I have had the same sales, service and techs for the last 7 years I have had Honda’s

07/25, 12:53 PM

posted by:

Bryce

Well put, miket.

07/25, 2:17 PM

posted by:

jonnycat

“A model with less dealerships has worked well for both Toyota and Honda, by having dealerships more spread out they can make a fair profit, and continue to grow. I have had the same sales, service and techs for the last 7 years I have had Honda’s”

Bingo freakin Bango. No truer words have ever been spoken.

The last city I lived in had 2 ford dealers for 85000 people. Within a half hour drive in any direction there were 7 more.

Other Toyota dealers on the other hand were at least an hour and a half to the next closest one.

07/25, 2:54 PM

posted by:

Ward Cleaver

Agree miket- there are way too many domestic dealers. Toyota has done far better with less.

07/25, 3:09 PM

posted by:

Deanster

Yes, Piablo, I find it’s rare that I share the same viewpoint as a beastialist!!

07/25, 3:45 PM

posted by:

Captain Spadaro

This explains why the Dodge dealership near my school closed down recently.

07/25, 3:57 PM

posted by:

Piablo

Hah, rare indeed. By the way, I never asked how your bid for the NAMBLA presidency went. Any success?

07/25, 4:34 PM

posted by:

global_lightning

Miket rocks on.
Simple laws of supply and demand. If you want more money for your product, don’t flood the market with it. Reducing production should be met with a reduction in sales venues. Weed out the weaker dealers and concentrate on growing the better ones.
Let’s just hope the dealers don’t decide to bleed Crysler with lawsuits like Oldsmobile dealers did before that brand was canned.

07/25, 7:24 PM

posted by:

RicardoHead

One major flaw to this strategy: Chrysler thinks it’s going to move more metal by making their inferior products more difficult and more expensive to purchase. If they don’t put good product in the remaining showrooms, this is not likely to be a great strategy.

07/25, 7:36 PM

posted by:

jackjimturkey

Old news. I wrote about it months ago

deantj: tell the truth, you stick to jeep because you want an SUV you can actually take off-road

well put, bryce

Grammar lesson: If you can count them, it’s fewer, not less.

Fewer joints, less weed

global: one more factor, I imagine it costs Chrysler less, when they have to deal with fewer dealers.

07/25, 8:39 PM

posted by:

Htay5500

true, IMHO, DCX was all quantity rather than quality…

07/25, 10:13 PM

posted by:

Elvio

I feel sorry for the dealer that they have to sell as many as of something (craps) that not many people want.

07/26, 4:25 AM

posted by:

Veda

“stick to Jeep, despite the fact that I can afford a nicer 4×4 now (like a Range Rover or an X5) because I am treated VERY well at the dealership, always with respect and fairly.”

Deanster: That’s just pure bull****, you probably just can’t afford them cause you’re an intern at some clinic… and you’re probably not Jewish or Asian cause they always know not to fall into flattery and marketing crap. Now we know that whenever Deantj rags on luxury brands it’s because he’s so jealous of those who can actually buy them cash. LOL!

07/26, 9:23 PM

posted by:

Deanster

HO HO HO!!! You’re a funny little ladyboy, aren’t you Veda, you ****ing raging AIDS-infested homosexual!

Why don’t you stick to your vomit-inducing rides (like those ****ing tumorous Ssongyangs) and leave the real cars to the rest of us?

Oh, and I COULD be an intern at a clinic, and I COULD be the guy that gives your mom a huge anal gape on weekends. Who knows? LOL!

07/26, 9:41 PM

posted by:

sharpie

All this after telling dealers to eat the overproduced inventory last year?

Chrysler should send itself one of those letters to “shape up” or “shut down!”

07/26, 11:42 PM

posted by:

AMGoff

Well… to reiterate the Assclown’s statement, I’m at the point in my life where I could afford just about any import I like, but then again I think anyone who spends anything more than $35k on a car is a ****ing moron. It’s such a ****ing waste… it’s a car… it has four wheels, an engine, a tranny, and it gets you from point A to point B and so on. The most expensive car I ever bought was the wife’s 300M which we got for about $28k and it still is a whole hell of a lot of car for the money, same goes for my Regal GS $25k. I just don’t get the point of 40,50,60,70 thousand dollar cars, they all do the same basic ****ing thing. Am I the only one that actually works for my money and likes to get the most for my dollar anymore? I like having a nice house more than I would want some super expensive car.

Regardless of all that… as far as the dealers go, they should all be Chrysler/Dodge/Jeep dealers or all completely separate. It’s so stupid that I have a Chrysler/Jeep dealer with a Sebring and a Compatriot and then five minutes down the road have a Dodge dealer with an Avenger and a Caliber. All together or all separate. Preferably all together in my opinion though.

07/27, 8:50 AM

posted by:

Deanster

Well put AMJackoff, except I do see the point in spending more for a vehicle. My initial argument was that I’m comfortable with the existing service I get.

By your logic, why spend 28k on that 300M when 15k on a 4-door Aveo would have sufficed? Did you really need 5 seconds off your 0-60 time and white-faced gauges?

BTW, you definitely “work” for the money! LOL!!!

07/27, 10:44 AM

posted by:

jackjimturkey

I don’t see the point in paying Mercedes money for a toyota, but you can get a decent car without spending more that about $32.

07/27, 7:28 PM

posted by:

AMGoff

Assclown, that’s a very good point, an Aveo will get you from one point to another. But I have no problem admitting that I do enjoy a certain amount of luxury in my daily driver. I like heated, power leather buckets , I like dual electronic climate control, I like power everything including a sunroof, I like traction control, and I really like a supercharged V6 all in a reliable, well built package. So if I get all of that in my Buick for 25K why on earth would I spend 45K on a Lexus or Mercedes to get the same damn equipment? My only point is that I can justify the price difference between my Regal or the wife’s 300M and an Aveo. The price of the added luxuries and power of those over the Aveo’s price can be calculated. It’s only when you get above that 30K mark that it starts making no freaking sense. What exactly are these ****ers paying 20K extra for, a name? That’s where it makes no sense to me.

08/05, 1:31 PM

posted by:

BLISS

CHRYSLER MUST DO THE RIGHT THING TO GENERATE SALES…..ALL THEY NEED TO DO IS TO APPLY THEMSELVES.

 
 
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