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Getting out of Dodge!

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  #1  
Old 05-21-2009 | 07:36 AM
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Default Getting out of Dodge!

That is the sign at my Dealers, he seems pretty bitter and I don't blame him, if the goverment thinks this is fair why doesn't Chrysler just transfer the bailout money debt to the old chrysler that all the debt holders got stuck with, or offer them 29 cents on a dallar that the goverment said was fair, no the goverment said 100% of bailout money will have to be paid before Fiat can be in control, said before: I love my truck, 3rd new Dodge ram I have bought but the way Chrysler is treating dealers, (they also want to get out of any liabilty suits up till now) because of a loophole in contracts during bankruptcy makes me wonder how I will be treated if they can find a loophole in my contract or waranty


http://www.star-telegram.com/busines...y/1378699.html
 
  #2  
Old 05-21-2009 | 10:31 AM
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They can not keep all the dealers open. Simple economics. When things slow you must cut overhead. In other words slim down, build less trucks/cars with less people. Less units mean less dealers to distribute them. As the economy grows so will units and dealers.
 
  #3  
Old 05-21-2009 | 10:59 AM
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Getting rid of dealers doesn't save the manufacturer any money. Dealers make the car companies money. The only people that benefit from fewer dealers are the surviving dealers. This is a political ploy by the Dems/Obama. It makes no sense at all for the stated reasons for the actions. This is the major reason the Govt put Chrysler in bankruptcy so they could violate the state laws that protect such actions from franchisors. Yeah, I will sell you this for $X and then take it away and sell it to some other guy. Will Churchill was pursued heavily by Chrysler to buy the Dodge dealership and then after he spends $3M on it, they tell him to go away. Frank Kent was the only Mopar store to have better 09 numbers than 08 in the entire Chrysler operation, but gets cut. Please don't get sucked into the lies out of Washington, fewer dealers doesn't have a dang thing to do with the bottom line of the car companies. It actually hurts them because of fewer places to inventory stock and fewer sales because some areas will not have a Chrysler store within an acceptable drive. There is an agenda and the bottom line has nothing to do with it.
 
  #4  
Old 05-21-2009 | 12:00 PM
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Dr Bill is 100% correct. Remember, we as end users do not purchase from the mfgr, only the dealers do. Dodge sells trucks to your dealer, they in turn sell to you. I think it sucks big time that chrysler is going to decide the fate of someone's business, their employees lively hood and in some cases the whole economics of a small town. This is not the American way and it should be a wake up call for all those people still supporting this president and his policies. It should be up to you and me to decide what dealers stay open and which ones close, we do this by using our money to purchase the product we want from whom we want. The govt needs to butt the hell out and let the American people get this country back to work and back on track. OK, I'm done, the soap box is free now. Jeff.
 
  #5  
Old 05-21-2009 | 01:25 PM
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We are becoming China. Beauty of it is that there exists the possibility people will wise up in roughly 3 1/2 years. It will be interesting to see how all these obuma heads defend they're decision to vote for that fvck once they start paying $1000 a month in utility bills and $6 a gallon in gas to try to force them to buy a runt/prius. Next
 
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Old 05-21-2009 | 04:43 PM
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Agree with most of what has been said. I thought many, if not all dealers purchase the vehicle through Chrysler Financial. Then they repay the loan when the vehicle is sold. Slow selling dealership could hurt Chrysler by not paying the loan back it a timely manner. But I also agree that if the dealership is making enough to keep the doors open they should be allowed to do so.
 
  #7  
Old 05-21-2009 | 05:52 PM
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Originally Posted by 94rt10ohio
They can not keep all the dealers open. Simple economics.
But it is the economics with this that don't make sense. Fewer dealers means less dealer to dealer competition. Less competition means the prices are going to go up. How in the world is a product that cost more, and is more difficult to purchase, going to sell more? If Chrysler ends up selling fewer vehicles, how do they end up making more money? This assumes the percentage of profit Chrysler makes from their dealers remains the same.

And if Chrysler had too much inventory and needed to make fewer vehicles, then by all means make fewer vehicles. The number of dealers had nothing to do with that. If some dealers could not get some models, so be it. I don't think the dealers needed to be closed, and I don't think it is going to help Chrysler one bit to close them. Lots of dealers got screwed over, and an estimated 36,000 people are going to lose their job over this. It will make the remaining dealers stronger, but I don't see where it is going to help Chrysler. Who made this decision anyway? Was it the same team of moron CEOs that drove Chrysler to bankruptcy in the first place?

MOPWR2U
 

Last edited by MOPWR2U; 05-21-2009 at 11:26 PM.
  #8  
Old 05-21-2009 | 06:20 PM
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chrysler did state in their filings for bankruptcy that 90% of their sales were made by 50% of their dealerships- take from that what you will.

this whole thing is caused by the idiots that got voted into congress in the 2006 elections, promising "change for the people." we got change, alright. when the democrats took over congress, gas was $2.30/gal, interest rates were good and the stock market was in good shape. fast forward two years, gas is $4.50/gal, interest rates are through the roof and the stock market is in a headlong nose dive. we got "change," yes we did- the uninformed mob of this country elected someone that promised even more "change." is the obama-nation telling the banks- who started the whole landslide, forced by congress and billary clinton to give people subprime loans for houses, knowing they full well would not be able to pay the loans back on time(which is why they didn't qualify in the firstplace for a loan)- how to spend the $800+ billion that was given to them? no- in fact, their letting the banks pay the execs bonuses and go on corporate retreats to aspen! well, i'll keep my guns, money and freedom- you can keep the "change!" who's next on the soapbox?

2012 - the end of an err.
 
  #9  
Old 05-21-2009 | 06:43 PM
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The morons that did this is your President and the idiots that he and the DNC put in charge that don't have a clue. Obama is an academic with no common sense or experience from a corupt political group that is giving away what you work for with the threat of prison if you don't pay. Economics clearly show that this is BS. They have an agenda at play and I don't understand it because their reasons are lies. The truth will come out, but most likely too late to stop. My family was in the auto business for years and I have talked personally to 20-30 franchise dealers that I know personally. They all will tell you that this is a lie. As far as financing inventory. CF gives you a floor plan time to sell. After that time, you pay interest to the finance arm. They don't lose money if you don't sell, the dealer does.
 
  #10  
Old 05-21-2009 | 07:52 PM
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Man!, I tried to be discreet, didn't know what the rules were about polical debate but I see you guys can read between the lines pretty good, glad to see I am not the only one here that is praying we can get thru 3 1/2 more years and try to get our country back, on a side note I heard 1 dealer on tv say that his dealership didn't cost Chrysler a penny, he said very time a jeep was unloaded he wrote them a cheak, another said Chrysler still makes money if he didn't sell a car, he repeated it, said with fees and such they still made money, also fewer dealers mean less service areas with more cars at those sites for service, you may need to make an appiontment BEFORE your car breaks down!
 


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