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Open Roads Forum  >  Tow Vehicles

 > GM, Chrysler to cut up to 3,000 dealers

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Capt Skup

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Posted: 05/14/09 04:44pm Link  |  Quote  |  Print  |  Notify Moderator

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell thier inventory at auction for pennies on the dollar.


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Blacstar

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Posted: 05/14/09 05:39pm Link  |  Quote  |  Print  |  Notify Moderator

Capt Skup wrote:

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell thier inventory at auction for pennies on the dollar.

And the beat goes on...........
You must spend your day looking for negative articles on Chrysler and GM..
Lifes short..Go camping
Happy Trails


Robert
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8.1 Van

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Posted: 05/14/09 06:26pm Link  |  Quote  |  Print  |  Notify Moderator

Looks like more big sales coming on Dodge trucks.



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Gale Hawkins

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Posted: 05/14/09 09:55pm Link  |  Quote  |  Print  |  Notify Moderator

Utah-Chrysler-dealership-closures

JALLEN4

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Posted: 05/15/09 05:29am Link  |  Quote  |  Print  |  Notify Moderator

Capt Skup wrote:

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell thier inventory at auction for pennies on the dollar.


Perhaps you could explain what exactly is "hard to argue with"? All of the dealers are independently owned businesses and are entirely owner/operator financed. They all pay the exact same price for the manufacturers merchandise whether they sell 200 or 2,000.

So, if your area won't support 1200 sales but rather 300, it is advantageous to the consumer to drive thirty or forty more miles for service? It helps who to eliminate the average fifty jobs each of the canceled dealers employ? How does it make the consumer's price more competitive because the dealer they are forced to buy from sells more vehicles annually and there is less competition?

Who is the benefactor when a family owned business in a community for decades is closed and bankrupted? How did you and I benefit when in our community a 43 year dealer was canceled, seventy-five employees were fired, and a five-million dollar facility will now stand empty. Who now will sponsor the little league teams, contribute to the symphony, and donate to our local charities. Just how is that "hard to argue with"?

Seven-hundred and eighty-nine small American businesses were arbitrarily put out of business yesterday and an estimated 40,000 American jobs were lost. All made possible by and paid for with American tax dollars. What exactly makes that "hard to argue with"?

You can write this on the wall. Within twenty-four months Fiat will be adding dealers in areas where they don't have adequate representation. Many will go right back into the areas where dealers were bankrupted yesterday. What exactly will make that "hard to argue with"?

Keith99RS

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Posted: 05/15/09 05:32am Link  |  Quote  |  Print  |  Notify Moderator

Blacstar wrote:

Capt Skup wrote:

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell thier inventory at auction for pennies on the dollar.

And the beat goes on...........
You must spend your day looking for negative articles on Chrysler and GM..
Lifes short..Go camping
Happy Trails


It doesn't take all that much effort to find articles sadly. He isn't slamming either of them in this post. He posted data. IMHO Data that shows exactly why Chrysler is closing all those dealerships. Supporting dealerships costs money. Why pay to support low sales numbers?


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JALLEN4

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Posted: 05/15/09 08:16am Link  |  Quote  |  Print  |  Notify Moderator

Keith99RS wrote:

Blacstar wrote:

Capt Skup wrote:

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell their inventory at auction for pennies on the dollar.

And the beat goes on...........
You must spend your day looking for negative articles on Chrysler and GM..
Lifes short..Go camping
Happy Trails


It doesn't take all that much effort to find articles sadly. He isn't slamming either of them in this post. He posted data. IMHO Data that shows exactly why Chrysler is closing all those dealerships. Supporting dealerships costs money. Why pay to support low sales numbers?


Perhaps, since you are making a definitive statement "Supporting dealerships costs money" you could explain, from your experience, how?
Maybe a cost/benefit analysis comparing the profit of a car sold to their only customer versus the actual cost of such a transaction? You need to realize that Chrysler contributes exactly zero dollars to the operation expense of these dealers. Keep in mind these dealers contribute to both local and national advertising on every vehicle they purchase, pay for any training of their personel, purchase parts daily for service work, front the money to the manufacturer for any rebates they choose to offer the consumer, pay for much of the advertising material they hand out, and contribute millions to other retail operational expenses of the manufacturer.

Perrysburg Dodgeboy

Perrysburg, Ohio USA

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Posted: 05/15/09 08:26am Link  |  Quote  |  Print  |  Notify Moderator

Blacstar wrote:

Capt Skup wrote:

Average Chrysler sales per dealer=300
Average Honda sales per dealer=1200
Average Toyota sales per dealer=1300
Hard to argue with those numbers.
What will happen to the current inventory of those dealers thrown to the wayside? If ties with Chrysler severed, they may not be able to sell "new" Chrysler vehicles. If Chrysler does not buy the vehicles back, the newly axed dealers may have to sell thier inventory at auction for pennies on the dollar.

And the beat goes on...........
You must spend your day looking for negative articles on Chrysler and GM..
Lifes short..Go camping
Happy Trails


Capt the cars will go to other dealers or back to the factory, talked to a my dealer last night, he well more then likely be getting the Jeep dealership that they closed and will be picking up some other inventory from other closed dealers.

That's all some can do here at RV.NET is post anti America articles kind of sad, two peas in a pod.

Don


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Gale Hawkins

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Posted: 05/15/09 08:39am Link  |  Quote  |  Print  |  Notify Moderator

JALLEN4 why too many dealers are a cost to the industry players.

Blip from link,

Toyota Motor Corp. has only about 1,400 dealers nationwide, compared with about 6,200 for GM, despite the fact that the Japanese automaker sells nearly the same number of cars. Honda Motor Co., with sales rivaling Chrysler's, has fewer than half as many dealers.

That means the average GM and Chrysler dealership sells fewer cars, has smaller profit margins and can't afford to invest as much in showrooms and customer service as its Japanese rivals, which experts say leaves a bad impression about the American brands on consumers.

GM, in the restructuring plan submitted to the government in February, said it hoped to reduce to 5,750 dealers by year's end and 4,100 by 2014. Chrysler, which has about 3,300 dealers, said it too planned to reduce the number, though it did not specify by how much. Its plan said 27% of its dealers were in financial distress.

hugginsj

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Posted: 05/15/09 08:53am Link  |  Quote  |  Print  |  Notify Moderator

Close 40% of your dealer network and import Chinese vehicles, Sounds like a good business plan to me.My next truck will be A Ford.

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