You can't just pick up new car franchises every day. These guys will have to close their doors in less than 30 days or risk becoming a used car lot. Wow what a way to treat a dealer who is not responsible for Chrysler's bankruptcy a 46% drop in sales is. And, TOYOTA SALES ARE DOWN. Ford outperformed Toyota last quarter.
Judy
of TX
@
May 19, 2009 13:42:14 PM
James Terry has it right
Look at the debt our governemt has racked up if you want the definition of bankruptcy. And our government is now managing auto companies?
Read this quote: "Auto dealers are not a cost burden
by Greg Remensperger, guest opinion
Friday May 15, 2009, 1:00 PM
ASSOCIATED PRESSFor several months we have been bombarded with information
about the future of General Motors and Chrysler. Every source of media
has had a hand in disseminating news on this subject. During all this
activity one misconception has been repeated so many times that it
has been mistakenly accepted as the truth. From many respected news
publications, to the President's Auto Task Force to the person who
watches the news in the morning over a cup of coffee, all have bought
into the notion that dealers create a cost burden to the manufacturers.
This is untrue and harmful to our nation's franchised automobile dealers
who are in actuality independent business owners just like the mom-and-pop
stores in your neighborhood.
The President's Auto Task Force is relying on this misconception to
force even more rapid dealer reductions at GM and Chrysler. These
dealers do not create a cost burden to the manufacturer. In fact they
are the first step to profitability. Our nation's new car dealers
provide the manufacturer more than 90% of their revenue each year,
and drive competitive pricing in the marketplace. The dealerships
in your neighborhood are not manufacturer owned, they are privately
owned by people who pay for the land, building, payroll for their
employees, every single car you see on the lot, and even the big manufacturer
sign out front. Essentially dealerships buy their cars from the manufacturer
the same way you buy your car from a dealership.
By allowing this misconception to go on, the risk is adding more people
without jobs to an already surmounting unemployment number. Our nation's
GM and Chrysler dealerships today employ almost 500,000 people and
the Task Force proposals would require GM and Chrysler to eliminate
as many as 3,600 dealerships and almost 190,000 jobs.
The bottom line is that closing dealerships is ineffective in solving
GM and Chrysler's problems. Conversely, this will negatively affect
thousands of people right here in Oregon and across the nation, from
these independent businesses, to their employees, from the vendors
that serve them, to the communities they support. Our nation does
not need further erosion of employment, it needs recovery.
Greg Remensperger is executive vice president of the Oregon Auto Dealers
Association"
HillbillyBill
of TN
@
May 18, 2009 17:17:05 PM
chrysler parts operation not consumer friendly
chryslers parts operation is and has been in shambles since the
seventys,to many cars,to many viariables of those cars (options). chrysler is good at making models for a few years and then discontinuing them and replacing it with something else. the attitude out of chrysler parts seems to be that you will get your parts when you get them.they need to find some
people that have worked gm parts operations and let them revamp
the whole parts system.
geoff king
of TX
@
May 15, 2009 18:29:49 PM
General public
They are not closing the dealerships. Chrysler will no longer sell their vehicles to the dealerships. If the dealer can pick up another line of cars then so be it. When you have a dealership 10 miles apart one should be closed. This will be good for all car makers. You don't see Toyota with dealerships 10 miles apart do you? And their profitable and still have the number 1 selling car.
Thomas Jenkins
of VA
@
May 15, 2009 17:26:18 PM
I don't understand !!!
How can this do anything but hurt Chrysler.I really can't understand this decision.The dealers buy into the automakers by franchising.So therefore the dealer owns everything except cars and they pay them off when sold.What difference does it make if the cars are sitting on a dealers lot (waiting to be sold) or sitting in a stock lot at Chrysler (waiting to be shipped).The only difference that I can see is if the cars are sitting at Chrysler, the consumer has no chance of buying the car.
Everyone's emphasis has been focused on car sales. What about service and parts? I know Chrysler may not get much back from service (dealers percentage of profit largely comes from service and part sales) But I know Chrysler makes a large profit from part sales.
Chrysler has been crying about not making any money. How is this going to help them??? I just can't get a grip on this..Looks to me instead of closing the places where they actually make there money from they would go after where the problem stems from. Over paid executives,over paid auto workers, and waste within the production process.
It makes me sick to think of all the job loses from this. And after all this is said and done, Chrysler will still have the same problems. Only made less money . I guess they will be looking for another hand out from us....
Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.
Judy of TX @ May 19, 2009 13:42:14 PM
HillbillyBill of TN @ May 18, 2009 17:17:05 PM
geoff king of TX @ May 15, 2009 18:29:49 PM
Thomas Jenkins of VA @ May 15, 2009 17:26:18 PM
James Terry of VA @ May 15, 2009 13:40:19 PM
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