Originally Posted By: jmac
That dealer made local news the night of the day the closure list was announced. Seems Chrysler/Dodge actually approached them to carry the brand and open the dealership. No details of the business arrangement but the Kent's claim to have invested millions on their end. They say they will be joining others in bringing civil suit. Plus even up to now they have been profitable. Some speculation that they are included in the list because they only carried the Dodge line and not Chrysler/Jeep as well.
That stinks if true. Great claim facts, but probably zero recovery. Bankruptcy allows Chrysler to pull this stuff and not suffer unless an adversary action is permitted . . . highly unlikely with the political element of this filing, as secured creditors have already been tossed under the bus.
Quite a few Saturn and Pontiac dealers are probably feeling the same way. Saturn dealers aren't that old, and most are modeled on the larger facility model with large investments.
Chrysler really hammered its dealers over the past decade. There were many old-time Chrysler/Plymouth franchises (the traditional pre-Jeep dealer model) that were crippled when the Germans murdered Plymouth (a great entry-level/recession brand - big mistake). Left as "one-points", they were ripe for later killing. That's what decades of loyalty to Chrysler got them.
In looking at these dealer closure discussions, both here and elsewhere, no one has put forth a sensible rationale for fewer dealers, or how it saves a manufacturer any meaningful money. Just because Toyota has fewer dealers isn't why they're more profitable. Mega dealers are only more profitable for those dealers.