I am glad that Chrysler Canada hasn't gone bankrupt yet. News says dealers were weeded out in Canada years ago to make it proportionate to size of town's but were let run wild in the US that is why they have to dump some. I think those dealers selling Chryslers right along side Hyundai and some other foreign deal all from basically the same dealership, I would say to them bye bye. I am sorry but we are all being giving up a lot. I just hope that we can all just get some plants running soon get people working and maybe things will work out. It is so different here and there, I think Chrysler owns the vehicles here in Canada at the dealers until they are sold then they go thru the dealer, if a dealer goes poof here they just come and get the cars,,,,happened to a GM dealership, they went bankrupt themselves and GM, Saturn Hummer all came and picked up their cars. Then a Nissan dealership was mistakenly stripped of stock. Its going crazy all over.

 

Do y'all really think Chrysler and GM would close dealerships if it wasn't beneficial to them? Why do you think Toyota, which has been successful, has less dealerships than GM or Chrysler as a ratio to vehicles sold?

Increased dealerships means increased competition. Increased competition means lower prices. They've done the economics. It would be better to sell a few less vehicles but at higher prices. The manufacturer doesn't just earn a flat amount for each vehicle sold. The more a vehicle sells for, the more Chrysler gets.

There are many other reasons for shutting down dealerships. There are a few (I know of three) where Chrysler owns or leases the land and the dealership leases from them(these have been around for awhile). They're shutting down the dealerships and plan on selling the land or breaking the lease.

Some dealerships have had poor customer reviews and this is a great way to shut those down. Some dealerships didn't want to cooperate with Chrysler management, so they too are getting shut down.

 

Sobomaster,
You are incorrect. Chrysler gets exactly the same amount regardless of which dealer sells them. There is some "step up money" in which more money is rebated to the dealer for selling above his "base" numbers as additional incentive. The number of dealers is really irrelevant to the bottom line of the manufacturer. They will have to increase the base numbers or risk actually paying more to the remaining dealerships. The MSRP and or the amount that the dealership sells the vehicle for has nothing to do with the amount of money that Chrysler makes on the sale of the vehicle to the dealer. You are right about the competition though. The fewer number of dealers, the fewer cars that will be sold in many areas. The remaining dealers will be able to sell at higher prices meaning that you and I as consumers will pay more to the DEALER.

 

This is both funny and scary at the same time.

http://www.sodahead.com/question/201...losi-car-2012/

After they're done molding the auto manufacturers the way they want them, this is more than likely next.

 

With all due respect, Sobomaster is correct. The dealerships being closed represent only 14% of total sales. Underperforming dealers cost the OEM a great deal of money.

First, there are the sales, service, and parts reps that support the dealers and assist with allocations and a multitude of other issues with the OEM. Whether the dealership sells one unit or a thousand, these are huge staffing costs for the OEM.

Then there are the a multitude of other costs such as co-op on advertising, business and program development, service technical staffing, higher consumer dissatisfaction, personnel training materials, etc...the list goes on and on and on.

The line that dealers don't cost the OEM anything couldn't be further from the truth. Even a dealer that is meeting its sales benchmarks can be an underperforming dealer or geographically redundant.

It is tragic that many long-term local dealers are being shut down. It is a step that the bankruptcy has allowed, as state franchise laws are normally highly protective of dealer interests, whether it's performing well or not.

In this marketplace, it's a step that had to be taken to ensure longer term viability, as the other option is to lose the brand entirely.

 

The othier point to pounder is the 2500 Rams are made in mexico. Product not made in the U.S.A or Canada, than you take away the ability to sell a mexican built truck in the U.S.A, than mover your sales out of North America, makes no sense, But its going to happen..

The othier issue is a chrysler product costs all dealers the same, but buy the time a consumer decides to buy, thiers a wide range in final sales price.

Now thiers a over supply and no demand and its harder to get credit.

 

The othier point to pounder is the 2500 Rams are made in mexico. Product not made in the U.S.A or Canada, than you take away the ability to sell a mexican built truck in the U.S.A, than mover your sales out of North America, makes no sense, But its going to happen..

Why did the government bail out a Gm and Chrysler when non of the products are 100% US. buillt?

The othier issue is a chrysler product costs all dealers the same, but buy the time a consumer decides to buy, thiers a wide range in final sales price.

Now thiers a over supply and no demand and its harder to get credit.

The othier shoe that's going to drop are gas prices, Thier gonna be going up and sone will be = to eroupean prices.. and Than inflation is going to start jumping up, its all a perfect storm..

 

"Staffing costs for the OEM", are you kidding me. There is not a single person at the dealership that is paid by the OEM. My family operated dealerships for 40 years, an underperforming dealership does not cost the manufacturer a penny. Where do you get this? The dealerships are independent businesses. They are not factory owned outlets. Many states actually will not allow an OEM to even own a dealership. Please do your homework before posting.

 

Even if Chrysler saves money by having fewer dealer reps, you couldn't expect them to have more than 200 dealer reps to service the 800 dealerships they closed. That would make them unbelievably selfish to expect 36,000 people to loose their jobs, just so they have 200 less employees.

 

I love this sh*t. People making it all political and blaming sides when it's Chrysler cutting slacking dealerships and it's that simple.