Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The same thing is happening in my state. I was afraid this was going to happening and the ones that are the most vulnerable are the smaller areas, like Raton. Sad.
The same thing is happening in my state. I was afraid this was going to happening and the ones that are the most vulnerable are the smaller areas, like Raton. Sad.
I guess someone who owns a Chrysler in Raton will have to go over the pass to Trinidad? That really sucks.
What many, probably most, people don't realize is that most of those shiny new cars on the lot are still owned by the manufacturer, not by the dealership. Too many dealers selling too few cars, the company loses a lot of money. They're cutting all the dead wood (underperforming dealerships) to try and save the company. Sad it is..but like pruning a bush it's neccessary if the company is to have a chance of survival.
What many, probably most, people don't realize is that most of those shiny new cars on the lot are still owned by the manufacturer, not by the dealership. Too many dealers selling too few cars, the company loses a lot of money. They're cutting all the dead wood (underperforming dealerships) to try and save the company. Sad it is..but like pruning a bush it's neccessary if the company is to have a chance of survival.
Closing dealerships isn't going to get that excess inventory sold any faster.
Closing dealerships isn't going to get that excess inventory sold any faster.
No, but it might help reduce future overstocks since they won't have to churn
out even more non-salable cars to keep minimum stocking levels at 800 more
dealers.
Or they could be making just one more bad decision in a sea of them...
For years there have been too many dealerships, and now a slow pruning has turned into a bloodletting. On Thursday, bankrupt Chrysler LLC notified about a quarter of its 3,181 dealerships that it would terminate their franchises on June 9 as part of a reorganization mandated by President Barack Obama's auto industry task force.
Too bad dealers could not have just stocked sample cars and only took delivery of cars they had already sold. That would have cut the dealers and manufacturers overhead considerably because it would change from a build to stock to a build on demand system. That would minimize inventory stocking and financial costs. It might have let really small "underperforming" (Lord, I really hate corporate crap speak) small town dealers maintain their franchise and make a living selling used cars while providing a useful service to the local community. Cutting dealers now is really destroying Chrysler’s future because these dealers will soon be cutting a deal with Honda et. al.
The thing that killed the auto industry was counting on making money off the loans while letting quality craftsmanship slip into the clunker category while charging luxury prices. The industry has been charging too much for too many years. I have heard that Chevy can build a ‘Vette for 10 grand and charge 80. I wonder how much it costs to build a Chevette.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
