Chrysler to close 789 dealerships

[amtrucker22]

CNN just reported that Chrysler says it will close 789 dealerships as part of its bankruptcy restructuring plan

 

[dragon]

yes this is true

 

[TheMoparConnection]

waiting to see whos on the list. Dragon hope you're safe. I know we are.

 

[VIPER D.N.A]

First off best wishes to all who work for the dealerships.

Now can someone please explain how this is beneficial to Chrysler? My understanding is that dealerships are independent of the Manufacturers. Are their "Chrysler owned" dealerships or dealerships that they are invested in? I was talking with a buddy yesterday who owns 2 GM and 1 Ford Dealerships and he said that all the "closings" were in larger metropolitan areas so he wouldn't be affected but to his knowledge all the dealerships are independent of the Manufacturer. So wouldn't closing dealerships actually hurt them by not having as many outlets for sales?

 

[BriteCrawler]

First off, Chrysler has at current time roughly 3200 dealers nationwide, so they're closing about 1/4th of their distribution chain.

Even if a dealer is privately owned, they all have a target sales responsibility to meet for their dealer status. These are basically franchise agreements as part of the brand.

Closing extraneous dealers helps keep the company from hanging extra inventory out there. Does a city like Atlanta (where I live) really need 17 different Chrysler, Jeep and Dodge dealers in a 100 mile radius? No. The sales and service needs can probably be serviced by 4 or 5, that have access to better inventory and all 3 brands under one roof.

Despite losing 400 dealers since early last year, Chrysler still has too many showrooms too close together, especially within metro areas. Merging them would leave nicer and better-staffed franchises which would be more profitable. Industry analysts say there still will be plenty of competition between dealers, from other automakers, and on the Internet.

Dealers say the company is picking which franchises to keep based on whether they have met sales goals, their profits, how well capitalized they are, the condition of their facilities and whether they have all three brands, Chrysler, Dodge and Jeep.

Chrysler for several years has been trying to consolidate its dealerships so all its brands are under one roof, but still many dealers remain with just one or two brands.

The company, in a motion filed with the U.S. Bankruptcy Court in New York, said many of the dealers' sales are too low. Just over 50 percent of the dealers account for about 90 percent of the company's U.S. sales, the motion said.

Yes, this will affect several small business owners and hurt them. There may be several instances where a moderately strong dealer in a rural area gets pared down because of a sales number or because they only carry 2 brands. While this will hurt several people, hopefully it will help the business become stronger.

It's a bad thing for the dealers, and I feel for anyone who's job is in jeopardy.

It's a good thing for Chrysler.

 

[GADodgetech]

Were safe at my dealership, but I know regency dodge in Jax was shut down. I think its a good thing for chrysler, But it makes me cringe at all the people that just lost their jobs.

 

[moparracing]

we're loosing 3 here in the portland metro area.......

 

[SilvrSRT10]

My local Chrysler/Dodge/Jeep dealer has shut down months ago. I don't think Chrysler had anything to do with it. I think that decision was made locally. They just weren't doing the business.

On a side note. I heard last night on the news that GM may be shutting down approx. 40% of their dealerships. I think the numbers were something like 6200 dealers with about 3600 being closed by next year.
http://abclocal.go.com/wjrt/story?section=news/local&id=6811286

 

[59caddyhog]

It's even happening in the UK.
Philip Wilkes has sold Chryslers in County Durham since the Neon came here in 1995 and he has closed his doors.

 

[GADodgetech]

ABC news said that an estimated 40,000 people lost thier jobs

 

[mopower1958]

They are closing 6 in Mississippi,the largest in Jackson. The owner said on the local news he was still going to sell Dodge parts and service Dodge vehicles.He also has Hundai and Kia on the same property.

 

[razorbackfan]

ABC news said that an estimated 40,000 people lost thier jobs

This was what I just read:

An industry group says the GM and Chrysler cuts combined could wipe out 100,000 jobs.


I heard earlier on fox news from a dealer saying he estimated 150k.

They are closing 8 in AR.
Dealerships include:

-Bob Carver's Cars & Trucks in Mena;

-Cook Jeep Chrysler Inc. in Little Rock;

-Crain Chrysler Dodge Jeep in Little Rock;

-Jim Bryant Motors in Springdale

-Jones Brothers Auto Inc. in Harrison;

-Louis George Motor Co. in Osceola;

-Malvern Chrysler Dodge Jeep in Malvern; and

-Steve Smith Country in Springdale.

 

[SANCHOBA]

any body have a link to listings?

 

[TNVIPER]

any body have a link to listings?

http://pinoyjobless.com/2009/05/chrysler-dealerships-closing-list-789-dealer-closing-full-list/




..

 

[jtsdad13]

larry any word from danny what the future holds at alleys. i saw their name on the list

 

[5_0_BAIT]

Yep. My local Dodge dealer is closing. I stopped by to see if they wanted to deal on the 2009 Super Bee SRT 8 Charger that they had for 44K on sale for 39K and guess what??? The damn price has gone back to 44K no deal won't budge. Maybe that's why their closing. Don't seem to understand the concept of S A L E!

I do feel bad for all the techs though. Where are they gonna get jobs?

 

[TNVIPER]

larry any word from danny what the future holds at alleys. i saw their name on the list

Doug Alley is trying to appeal but from what i have read the list is final...They are also a Jaguar & Saab dealer but they dont sell 20 Jags/Saabs a year....probably going to continue as a used car dealer but I doubt the service dept will continue....I spoke with Danny and he is operating the service dept as if it were staying but is looking at other options.....I hate to lose them...not another Chrysler dealer in 200 miles that could even come close to their service....I guess the party might be over..

 

[jtsdad13]

Doug Alley is trying to appeal but from what i have read the list is final...They are also a Jaguar & Saab dealer but they dont sell 20 Jags/Saabs a year....probably going to continue as a used car dealer but I doubt the service dept will continue....I spoke with Danny and he is operating the service dept as if it were staying but is looking at other options.....I hate to lose them...not another Chrysler dealer in 200 miles that could even come close to their service....I guess the party might be over..

we just gotta see where danny and elvis land. maybe they should open their own shop. cause i would do my own work before taking it to carl gregory.

 

[TNVIPER]

we just gotta see where danny and elvis land. maybe they should open their own shop. cause i would do my own work before taking it to carl gregory.

Danny is looking into just that...his own shop.......BTW..Elvis does have a garage at his house and does work on the side...he has a reputation for building older Mopars and has a big following........wasnt he going to do something for you a while back?

 

[jtsdad13]

Danny is looking into just that...his own shop.......BTW..Elvis does have a garage at his house and does work on the side...he has a reputation for building older Mopars and has a big following........wasnt he going to do something for you a while back?

he was gonna do my headers, plugs, and wires on the side for cheap before the headers fell through.