Some dealers fighting harder than others.

[Volvohead]

http://www.philly.com/philly/business/20090611_Dealership_fighting_back_against_closures.html

Beans runs a good operation around here. They certainly haven't lost Chrysler and GM any money. Good words said, but I doubt it will halt the execution.

 

[ZZman]

One Chrysler dealer here in Michigan that is being closed said he is getting multiple offers from foreign car companies to carry their vehicles.

 

[IndyIan]

How do dealerships cost manufacturers any real money? Is it just management costs of interacting with many dealers that GM and Chrysler are trying to save?
I guess shipping the full range of cars twice to a city costs more than doing it once but is that significant?
My buddy had a bike shop and it always cost him to bring in a new line of bikes... Minimum order size, etc... I didn't really see how it was costing the bike manufacturer anything?

 

[XS650]

My semi-edumacated guess is that the car companies are taking advantage of the situation to replace PITA and under performing dealerships with new ones and just plain dump dealerships without enough volume to bother with.

Car dealers are used to hosing the public, they should appreciate the irony getting a good hosing themselves.

 

[Tempest]

Their donations to certain groups, I'm sure, has nothing to do with it...

 

[demarpaint]

Originally Posted By: XS650
My semi-edumacated guess is that the car companies are taking advantage of the situation to replace PITA and under performing dealerships with new ones and just plain dump dealerships without enough volume to bother with.

Car dealers are used to hosing the public, they should appreciate the irony getting a good hosing themselves.


I find it hard to feel sorry for them, especially the local Chrysler Dealer in my neighborhood that's shutting down.

 

[oilyriser]

Reduce competition, increase profit. I always wondered why GM had several divisions competing against one another.

 

[wander2039]

I'm surprised KIA or Hyundai hasn't approached some of these dealers. Good opportunity to get out into rural areas. I'd buy either one before I would GM or chyrsler.

 

[doubleclutch]

In my daily home to work/work to home travels, I have watched a Chrysler/Dodge/Jeep/Kia dealer in Durham, N.C. slowly reduce their inventory down to not one single vehicle. It has closed up, lock, stock and barrell. It was a fairly good size dealership that has been in business as long as I can remember. I think of all the employees that lost their jobs.

 

[Gary Allan]

Originally Posted By: XS650
My semi-edumacated guess is that the car companies are taking advantage of the situation to replace PITA and under performing dealerships with new ones and just plain dump dealerships without enough volume to bother with.

Car dealers are used to hosing the public, they should appreciate the irony getting a good hosing themselves.

The role reversal just wasn't all that they thought it would be. "What I do?" (visions of Billy Jeff in Jib-Jab)

The thing is, I don't really see the attitude changing any. Mega dealerships will be even more insulated from their customer's outrage for being hosed.

 

[oilyriser]

Having huge inventory and a large storage lot is a tremendous waste of money. Customers could order the car they want and be offered temporary wheels by the dealership until their car is made and shipped from the factory, which could take less than two weeks.

 

[bretfraz]

Originally Posted By: IndyIan
How do dealerships cost manufacturers any real money? Is it just management costs of interacting with many dealers that GM and Chrysler are trying to save?
I guess shipping the full range of cars twice to a city costs more than doing it once but is that significant?
My buddy had a bike shop and it always cost him to bring in a new line of bikes... Minimum order size, etc... I didn't really see how it was costing the bike manufacturer anything?


Here is something I found from a GM Twitter post:

#Fritz Henderson says, “The reductions in direct dealer support will result in annual savings for GM of over $2 billion annually.”

 

[javacontour]

Originally Posted By: XS650
My semi-edumacated guess is that the car companies are taking advantage of the situation to replace PITA and under performing dealerships with new ones and just plain dump dealerships without enough volume to bother with.

Car dealers are used to hosing the public, they should appreciate the irony getting a good hosing themselves.


I was thinking the same thing. The most sleazy Chrysler dealer around here was the one to get the axe. It wasn't just the local store here, others in the St. Louis metro and beyond also got cut, so Chrysler likely wanted nothing to do with this family of dealerships.

Perhaps it was this sort of behavior that did them in...

 

[javacontour]

He later was acquitted. Apparently he found a Virgin Islands judge to produce documents saying he was a resident.

So perhaps he can open a dealership in the VI.