Chrysler Aims To Eliminate 789 Dealerships - Jeep Commander Forums: Jeep Commander Forum
General Commander Discussion General Discussion involving the Jeep Commander goes here. If it does not fit into a more specific category below, post it here.

Reply
 
LinkBack Thread Tools Display Modes
post #1 of 16 (permalink) Old 05-14-2009, 10:01 AM Thread Starter
Senior Member
Points: 63,765, Level: 100 Points: 63,765, Level: 100 Points: 63,765, Level: 100
Level up: 0% Level up: 0% Level up: 0%
Activity: 0% Activity: 0% Activity: 0%
 
a49erFan's Avatar
 
Join Date: Jan 2007
Location: Sunny Arizona
Posts: 12,582
Send a message via Yahoo to a49erFan
Chrysler Aims To Eliminate 789 Dealerships

Chrysler Aims To Eliminate 789 Dealerships
Restructuring Move Would Cut 25% Of Automaker's Dealers

POSTED: 7:07 am MST May 14, 2009
UPDATED: 7:45 am MST May 14, 2009


NEW YORK -- Chrysler LLC has told a bankruptcy court it plans to eliminate 789 of its dealers -- or about 25 percent of them -- across the country as part of its restructuring process.

The automaker has about 3,200 dealers but says that's too many. It wants to have stronger, more profitable dealers with better facilities.

Chrysler spokeswoman Kathy Graham says the company will notify specific dealers before commenting publicly.

The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the U.S., costing jobs and tax revenue.



a49erFan is offline  
Sponsored Links
Advertisement
 
post #2 of 16 (permalink) Old 05-14-2009, 10:03 AM Thread Starter
Senior Member
Points: 63,765, Level: 100 Points: 63,765, Level: 100 Points: 63,765, Level: 100
Level up: 0% Level up: 0% Level up: 0%
Activity: 0% Activity: 0% Activity: 0%
 
a49erFan's Avatar
 
Join Date: Jan 2007
Location: Sunny Arizona
Posts: 12,582
Send a message via Yahoo to a49erFan
Now is the time that those non-5 star dealers are beginning to worry.



a49erFan is offline  
post #3 of 16 (permalink) Old 05-14-2009, 10:48 AM
Senior Member
Points: 12,259, Level: 72 Points: 12,259, Level: 72 Points: 12,259, Level: 72
Level up: 53% Level up: 53% Level up: 53%
Activity: 0% Activity: 0% Activity: 0%
 
JillTheThrill's Avatar
 
Join Date: Dec 2008
Location: Madison, Alabama
Posts: 2,076
Wooooooooow, this is alot! Hoping my local one will stay!!!

2008 Jeep Commander XK Sport, Name: WAR MACHINE
"Mineral Gray Metallic Exterior On Mineral Gray Metallic Wheels"
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
JillTheThrill is offline  
 
post #4 of 16 (permalink) Old 05-14-2009, 10:56 AM
Senior Member
Points: 12,498, Level: 73 Points: 12,498, Level: 73 Points: 12,498, Level: 73
Level up: 12% Level up: 12% Level up: 12%
Activity: 0% Activity: 0% Activity: 0%
 
rwmorrisonjr's Avatar
 
Join Date: Mar 2007
Location: Alexandria, VA
Posts: 2,337
Send a message via AIM to rwmorrisonjr Send a message via MSN to rwmorrisonjr Send a message via Yahoo to rwmorrisonjr
Sadly, this is what needs to be done to help keep Chrysler (and GM and Ford) viable. The domestic dealer network is bloated and a remnant of the mid-20th century business/marketing model, and is kept alive by state dealer franchise laws. Most people now don't have any loyalty to a local dealer as they can buy the same car from any dealer nationwide, and have it serviced locally.

One option would be to continue to maintain a larger network of brand specific service departments without an attached showroom for warranty and other work, or have an attached virtual showroom without inventory. That woudl cut costs on both ends tremendously while still providing a sales and service point, as well as keeping current employees working.

2006 XK Sport, 4.7l, QTII- many mods
----------------------------------------------------
'An armed society is a polite society. Manners are good when one may have to back up his acts with his life."- Robert A. Heinlein

"Men sleep peacefully in their beds at night because rough men stand ready to do violence on their behalf."- George Orwell



To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
rwmorrisonjr is offline  
post #5 of 16 (permalink) Old 05-14-2009, 11:03 AM
Senior Member
Points: 15,238, Level: 79 Points: 15,238, Level: 79 Points: 15,238, Level: 79
Level up: 78% Level up: 78% Level up: 78%
Activity: 0% Activity: 0% Activity: 0%
 
adamag25's Avatar
 
Join Date: Jul 2008
Location: Northwest Central Jersey
Posts: 2,629
Everyone knows of that one good dealer near to them, THAT ONE is the one that is going to stay. The dealer I do business with has recently consolidated but they are the good one in our area. It is now Smith Chrysler, Jeep, Dodge, Ford. There was one in Clinton, NJ and they were such a bad dealership they had closed down because of lack of business long before the economy went down. The only other one around is Flemington but they are not know for good customer service or sales but they are owned by a large car dealer group so they may be able to survive the cuts. I think it is good that they are cutting some dealers. I don't know why there needs to be 2 or 3 dealers in one town for each automaker. It is not like you are buying a car once or twice a week. When the time comes that you have to buy a car or get service you may have to drive a couple extra miles but I think it will make the dealerships much better.

Bright Silver 4.7L 2.25 RR/OME lift, Kumho KL71 265/70/17, Flashpaq, Lights, rack, intake, Super44, mopar skids, 4x belly guard, rear fog lights, MM9500 winch, GetLost4x4 winch mount

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

HILLBILLY DELUXE

Last edited by adamag25; 05-14-2009 at 11:06 AM.
adamag25 is offline  
post #6 of 16 (permalink) Old 05-14-2009, 06:55 PM
Senior Member
Points: 11,816, Level: 71 Points: 11,816, Level: 71 Points: 11,816, Level: 71
Level up: 42% Level up: 42% Level up: 42%
Activity: 0% Activity: 0% Activity: 0%
 
robby's Avatar
 
Join Date: Jun 2008
Location: Desplaines IL.
Posts: 3,262
I'm really confused with this approach.
Regardless of the number of dealers, it does not cost the manufacturer any real money.
The dealer must pay for special tools, special equipment etc.
It is not provided by the manufacturer at no charge, it is a pass through expense.
Same goes for advertising, it is a dealer expense.
So, if there were 4 dealers in a 40 mile radius selling 25 cars each a month, and now there is 1 dealer in that radius selling 100 cars a month, how does that help the manufacturer?
Same goes for parts volume to the service dept.
There is no way a service dept. can absorb the 3 lost dealers worth of mechanics, so now it will become harder to get service done in a timely manner.
Also, because there is now 75% less competition in the area, the remaining dealer will be less inclined to deal on the merchandise.
I'm confident the loss of dealers will further erode the already weakened sales tax base.
Hell, I could go on and on.
Regarding poor dealer operations, the market place has always succeeded in thinning out the bad ones anyways, and, if the one good dealer gets axed because of poor sales penetration or high warranty expense because he tried to help his custumers............
That is what will occur though.
The average dealer employs about 20 people.
800 x20= 16000 people added to the jobless table.
I think the trickle down effect is going to be HUGE!
And, we haven't added the G.M. dealers into the mix.
That will be tomorrow, and much higher than 800.

Methinks we are in for a gigantic surprise that we're not gonna like.
Rob


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
|
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
|
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.

Last edited by robby; 05-14-2009 at 09:11 PM. Reason: crummy spelling
robby is offline  
post #7 of 16 (permalink) Old 05-14-2009, 08:04 PM
Senior Member
Points: 11,208, Level: 69 Points: 11,208, Level: 69 Points: 11,208, Level: 69
Level up: 90% Level up: 90% Level up: 90%
Activity: 0% Activity: 0% Activity: 0%
 
jcoulter's Avatar
 
Join Date: Sep 2007
Location: Orion, IL
Posts: 1,091
They are closing two dealers near me. One of them put the new motor in my XK last year and they are a 5 star dealer.

As everyone else has said, how does this help Chrysler?

06 Sport-4.7L with QT2

To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
jcoulter is offline  
post #8 of 16 (permalink) Old 05-15-2009, 07:37 AM
Senior Member
Points: 5,906, Level: 49 Points: 5,906, Level: 49 Points: 5,906, Level: 49
Level up: 78% Level up: 78% Level up: 78%
Activity: 0% Activity: 0% Activity: 0%
 
XKTX's Avatar
 
Join Date: Jun 2007
Location: San Antonio, Texas
Posts: 269
They are closing one by my area and I hope they have liquidation prices.

06' Black Limited QDII HEMI - 2" Revtek Lift 245/75/17 Goodyear Duratrac -Monroe Sensa Trac Struts and Sensa Trac Load Adjusting Shocks.
XKTX is offline  
post #9 of 16 (permalink) Old 05-15-2009, 10:49 AM
Senior Member
Points: 5,363, Level: 47 Points: 5,363, Level: 47 Points: 5,363, Level: 47
Level up: 7% Level up: 7% Level up: 7%
Activity: 0% Activity: 0% Activity: 0%
 
BoilerCommander's Avatar
 
Join Date: Jul 2007
Location: Northern Indiana
Posts: 526
Quote:
Originally Posted by XKTX View Post
They are closing one by my area and I hope they have liquidation prices.

We have 4 Jeep/Chrysler/Dodge Dealers in South Bend (we had 5 but it closed last year) and it is so weird what is happening.

One of them that also sells GM, will only keep Chrysler and their sister store only keeps Jeep.

One of the mega dealers is getting rid of all Jeep, Dodge, and Chrysler and having amazing deals, and publicly announced they will take a loss on the vehicle just to get rid of it.

The fourth only sells Dodge and Jeep and is keeping both.

(There are about 4 or 5 more Jeep dealers in surrounding the area, I just dont know what is happening to them.)

Aaron's 2006 Commander 4.7 V8 QT-II:
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
---
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
---
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.


To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
--
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
BoilerCommander is offline  
post #10 of 16 (permalink) Old 05-15-2009, 10:59 AM Thread Starter
Senior Member
Points: 63,765, Level: 100 Points: 63,765, Level: 100 Points: 63,765, Level: 100
Level up: 0% Level up: 0% Level up: 0%
Activity: 0% Activity: 0% Activity: 0%
 
a49erFan's Avatar
 
Join Date: Jan 2007
Location: Sunny Arizona
Posts: 12,582
Send a message via Yahoo to a49erFan
I read in this mornings paper that we are losing 5 in Arizona, they have 30 to 60 days to wind down their business.

Chrysler prohibits them from doing warranty work and will not buy back any vehicles, parts or special tools.



a49erFan is offline  
Sponsored Links
Advertisement
 
Reply

  Jeep Commander Forums: Jeep Commander Forum > Jeep Commander Discussion > General Commander Discussion

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the Jeep Commander Forums: Jeep Commander Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in











Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome