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Chrysler dealers being shut down.

Hardass

Well-known member
Lifetime Membership
Just seen on the news a bunch of chrysler dealers are losing there dealer ships, and Chrysler will not be purchasing back any inventory from them that would suck.
 
chrysler dodge and ford dealer here... we got a letter saying we will be staying with "the new chrysler". they are terminating 789 franchises... most of these are stand alone stores that will be resumed by other franchised stores i assume, still too early to know the plans as of yet.

this is going to effect huge amounts of people, hopefully things start getting better real soon.
 
chrysler dodge and ford dealer here... we got a letter saying we will be staying with "the new chrysler". they are terminating 789 franchises... most of these are stand alone stores that will be resumed by other franchised stores i assume, still too early to know the plans as of yet.

this is going to effect huge amounts of people, hopefully things start getting better real soon.

Glad to hear that you made the cut. :beer;
 
Maybe some of the guys losing their jobs can apply at Chryslers new engine plants in Mexico :( Not good-
 
I am seeing the same basic thing in my industry. The big maufacturers are getting rid of the dealers that don't make them any money. I have a feeling this will happen in most industries.
 
Chrysler here in town will officially be a USED car dealer soon... I dont know why GM and Chrysler are cutting dealers it just seems messed up.
 
thats what our gm dealer was afraid of so he closed 4 of his 5 dealers in a 45 mile circle so he could get all credit back on inventory. he said if his dealers where axed down the road he would be stuck with the inventory
 
I am seeing the same basic thing in my industry. The big maufacturers are getting rid of the dealers that don't make them any money. I have a feeling this will happen in most industries.

This plan makes too much sence , it must not be true
 
Well in the case of chrysler it's not about the profitable ones it's about the locations and the future. So there saying.
 
Well in the case of chrysler it's not about the profitable ones it's about the locations and the future. So there saying.

LMAO I wouldn't want to have given a statment like that.


so the ones that are in good locations and losing money techinically would still be above the cut lol.
 
Well from the interview i seen yes that is the case.And the dealer in the 94 pasition out of 3400 is very up set about it.
 
Heres a list of some of the stores in MN that got shut down..
Boe Chrysler Center (West Concord)
Denny Hecker's Chrysler Dodge Jeep Of Pine City (Pine City)
Factor Motors (Le Center)
Fury Dodge (Lake Elmo)
Iron Trail Motors (Virginia)
Marchant Motor Company (Spring Valley)
Mason Motor Company (Excelsior)
Nereson Automotive (Detroit Lakes)
North Star Garage (Milaca)
Paul Busch Auto Center (Wabasha)
Pen Motors (Duluth)
Salem Motors (Crookston)
Salmon Motors (Tracy)
Scholtes Motors (Worthington)
Scott-Preusse (Redwood Falls)
Sonju Two Harbors (Two Harbors)
Stillwater Motor Company (Stillwater)
Wally's Auto Service (Orr)
DBA Walser Dodge (Hopkins)
 
How does shutting down dealerships save the company money? Isn't each dealership independent and responsible for their own loses and profits?

I'm know dealer, but I'm sure that the company doesn't subsidize the dealerships, so again, how is this goingto same any money,.

Won't this simply translate into poorer service when you need warenty work done on your vehicle?

Maybe they should look at wage and benefits, retirements, etc and revamp that. (I'm sure they are)?
 
Not sure how it works but i'm thinking there are not enough sales to go around so less dealers means more buisness for the dealers they still have.

Gm gave out 1100 dealer pink slips today and will be giving out over 1000 more soon.
 
There are still costs involved from the automakers down to the private sellers. Excess dealers competing for the same business brings down the retail market costing lots of sales among dealers, and with fewer buyers these days thats results in the automaker having dealers fighting over the same sales more and more, not healthy for anyone in the industry but the buyer.

Another thing is that I think is killing them but this is just my opinion is some of the dealers themselves. With all the struggling dealers out there they have less money for PROPER advertising, modern buildings that attract customers, customer amenities, etc. that leads to a strong sales line within the brand. Dealers are having to sell their inventory at huge losses, not giving them the revenue to keep up with other large productive dealers who are more high volume and can afford to take a bigger hit on vehicles because they are moving more inventory.

As for costs that the autmaker has with dealers, they pay for administrative services, marketing assistance, parts and service support, auditing, etc. One site I was reading last night said that they are spending almost $500 more on a Detroit vehicle than national average, which was costing them almost $3-4 billion, would have to double check that.



Ya it sucks, even in my hometown here in Bismarck, ND, we have one of the oldest family owned Dodge/Chrysler dealers in the US and they will be closing their doors to the brand name. But I would also have to say they saw it coming as they just built a new store based on the Toyota brand they carry, and said the Dodge/Chrylser portion was only 25% of what they do now. Another one is we have 3 GM dealers here in town, 3 for the size of less than 80,000. That is way to many in my mind, as you can already see here that the Pontiac dealer was struggling and the two Chevrolet dealers aren't even close by comparison. One dealer is already making most of the sales here as they have been doing things right for a long time, you can see the other two struggling for years to keep up in the market here, it is just not healthy as a whole.

Sorry for being long winded, just my .02
 
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