Chrysler/Cerberus gives dealers 6 months to improve sales or else
Chrysler/Cerberus gives dealers 6 months to improve sales or else
Chrysler/Cerberus gives dealers six months to improve sales, or else
AutoBlog.com
Seems we were just talking about this type of threat with another manufacturer, but now Chrysler is putting some pressure on its own dealer network to shape up or shut down. The Wall Street Journal is reporting that Cerberus Capital Management via Chrysler Group's new management team is giving under-performing dealerships just six months to show an improvement.
While state anti-trust laws tend to discourage manufacturers from having too much say in the retail end of things, other companies have found ways around that issue. According to the article, they merely want to "encourage" smaller dealerships to merge with larger ones. But even there, automakers are seldom successful at making the dealers comply, even when sales are dismal. Cutting off supplies or only offering less desirable models or option packages is one way they can make it difficult for a dealer to stay afloat, but they'd rather the dealer just get better at what they're doing or get the heck out. Ford and GM have gone through similar dealer cullings over the past few years. It's certainly not the last we'll hear about it.
[Source: Wall Street Journal via The Truth About Cars]
AutoBlog.com
Seems we were just talking about this type of threat with another manufacturer, but now Chrysler is putting some pressure on its own dealer network to shape up or shut down. The Wall Street Journal is reporting that Cerberus Capital Management via Chrysler Group's new management team is giving under-performing dealerships just six months to show an improvement.
While state anti-trust laws tend to discourage manufacturers from having too much say in the retail end of things, other companies have found ways around that issue. According to the article, they merely want to "encourage" smaller dealerships to merge with larger ones. But even there, automakers are seldom successful at making the dealers comply, even when sales are dismal. Cutting off supplies or only offering less desirable models or option packages is one way they can make it difficult for a dealer to stay afloat, but they'd rather the dealer just get better at what they're doing or get the heck out. Ford and GM have gone through similar dealer cullings over the past few years. It's certainly not the last we'll hear about it.
[Source: Wall Street Journal via The Truth About Cars]
Record Breaker
Joined: Feb 2004
Posts: 1,513
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From: Warren MI. Home to Rams and Dakotas
RE: Chrysler/Cerberus gives dealers 6 months to improve sales or else
Yep now thats a way to start off a new partnership. The dealers should say the same thing back. Give us something to sell in the next six months instead of a bunch of suvs that nobody wants. Apparently stupidity will still reign supreme at the new Chrysler.
Admin formally known as 94rt10ohio
Joined: Apr 2005
Posts: 9,025
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From: Curtice, OH
RE: Chrysler/Cerberus gives dealers 6 months to improve sales or else
Look at it this way, it is good for the consumer. Higher trade in values and more willing to take additional $$ off sticker beyond the rebates.
Joined: Apr 2007
Posts: 35
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RE: Chrysler/Cerberus gives dealers 6 months to improve sales or else
I think Mopar is just churning out crap anymore. The saving grace will be the new Challenger in terms of sweet cars, but not enough people are into that sort of thing anymore. Everyone wants sports sedans or performance sedans or whatever they call them now. The first thing that pops into my head when I see one of those is oxymoron on wheels. I'm sorry but What they're putting out nowadays upsets me. Not just Mopar but Ford and GM as well. You can only sell so much crap, before people get tired of it and stop buying, ya know?
Record Breaker
Joined: Feb 2004
Posts: 1,513
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From: Warren MI. Home to Rams and Dakotas
RE: Chrysler/Cerberus gives dealers 6 months to improve sales or else
ORIGINAL: 94rt10ohio
Look at it this way, it is good for the consumer. Higher trade in values and more willing to take additional $$ off sticker beyond the rebates.
Look at it this way, it is good for the consumer. Higher trade in values and more willing to take additional $$ off sticker beyond the rebates.
R.I.P. Dusty (Retired Moderator
Joined: Dec 2003
Posts: 24,471
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From: Alamosa, Colorado (200 yards from the Rio Grande)
RE: Chrysler/Cerberus gives dealers 6 months to improve sales or else
That explains all the offers I've been getting in the mail from my Dodge dealer wanting me to trade in my SRT-4.............
Dusty
Dusty