List of Chrysler Dealers closing

[AndyMA]

Just saw this map:

Chrysler Dealership Closings: - CNNMoney.com

Andy

 

[Bird]

Andy, that's interesting. Thanks for posting it. I see it includes the Chrysler-Jeep dealership less than a mile from my house on I-35E; however, the same folks have another Chrysler-Dodge dealership not more than 10 or 12 miles farther south on I-35E. I think the old gentleman who started that dealership more than 50 years ago just died this year.

 

[JB4310]

I'm glad to see the dealer I bought my 3500 work truck is not on the list, they are only a few miles from my house. they had been around for over 50 yrs in the same little corner, about 5 years ago they relocated to a giant stand alone mega store, must of cost them all the money they ever made. they have a barber shop and a diner inside the dealer, along with a collector/antique car museum..
Then the bottom dropped out of the economy. every time I go there it's dead. If Chrysler survives then having less dealers should help the ones remaining.

Don't know why Chrysler would require the dealers to close, I don't think the dealers get any financial help from Chrysler.

JB.

 

[two_bit_score]

>>>"If Chrysler survives then having less dealers should help the ones remaining."<<<<



Would someone please explain to me, in very simple terms, how having less dealers buying cars is going to help the manufacturer?

As I understand it the dealer's apy for the cars when they order them via their floor plan. The more dealers buying cars to sell seems like it would help the companies.

What am I missing?

 

[Scooby074]

>>>"If Chrysler survives then having less dealers should help the ones remaining."<<<<



Would someone please explain to me, in very simple terms, how having less dealers buying cars is going to help the manufacturer?

As I understand it the dealer's apy for the cars when they order them via their floor plan. The more dealers buying cars to sell seems like it would help the companies.

What am I missing?

In a large number of places, there are several Chrysler dealers within a short drive of each other. By closing (pruning) dealerships, essentially eliminating competition, it allows the remaining ones to be stronger.

A large percentage of the closed (closed may be the wrong term) dealerships sold several different manufacturers, so they wont feel the pinch as bad.

Other dealerships that were revoked had a greater volume of used sales compared to new vehicle sales.

Banks have de-valued Chrysler vehicles to such a point (over 30% from my source) that dealer principals have had to put their homes and other property up as collateral. I imagine that many of these "closings" were voluntary as a result of that de-valuation.

Also, having to produce less vehicles (for dealership floorplans) is essential. Ive read someswhere that Chrysler has over 300k vehicles sitting on lots unsold. Chrysler has to carry these cars for several months? dragging down profits. Dealers dont actually "buy" the cars sitting on the lots for 90 days ( i believe).

While it sucks for the employees, its necessary for the survival of Chrysler.

Just wait till GM goes through this exact thing next week

 

[JoeinTX]

Scooby nailed it.


Toyota is selling 30% more vehicles than Chrysler in the U.S. while using about 60% the factory space and dealers that Chrysler does to do so. Simple really.


Chrysler, and GM as mentioned above, is having now to pay for decades of poor decisions, products, and labor agreements. And major corrections are in the works for both of them. Rightfully so. These are all matters than should have been handled years and years ago but management at the "Big 3" kept kicking the can down the road and now the ultimate bills have to be paid. The foreign makes have managed their ops much better for times like these while the doms have managed their biz as if there would never be bad times. Hear the music yet?


The country and the economy will be the better for it once and done..........

 

[dgl24087]

One of the dealers being eliminated, John P. Hughes Motor Co. in Madison Heights, Va., purportedly is the oldest continuos Dodge dealership in the world, having been founded in 1915.

 

[AndyMA]

Another article I read says that it cost Chrysler a lot of money to keep each dealer open in terms of support and spare parts.

Andy

 

[dgl24087]

Most of the dealers that I have knowledge of on the list are multibrand dealers who carry a single line, such as Jeep. There are about 8 dealerships within about a 25 miles radius who carry all or parts of the Chrysler, Dodge or Jeep family.

 

[Diamondpilot]

These single line dealers are going to be dead. There is simply too much overhead. I read in my local paper this morning that GM may make the announcement today and it could be 3-4 times as many dealerships closing as compared to Chrysler.

In my town of 100,000 to 120,000 there has not been a Dodge/Chrysler/Jeep dealer for about 5 years. You must drive 40 miles to buy one. That is the main reason there is a very weak showing in this area. Technically there is no Ford dealer although there is a good dealer in a small town 4 miles away. There is a very strong Kia dealer, also a Honda, Toyota, Nissan, and GM dealer but its loosing sales according to the local paper.

Chris