Does anyone have reports of Dealerships in their areas loosing their franchises? I am struck by the lack of concern for Dealership employees and for how much communties lose when Dealerships close.
Acccording to the recent articles in out statewide paper, the NH Union Leader, 47% of the new car dealerships statewide are expected to lose their franchises by year’s end.
It won’t be pretty.
I think that the manufacturers are just now finishing their lists. I’ve seen several dealers near me that closed already; I bought a car from one earlier this week. We’ll find out soon enough. There’s no sense in rushing the end.
In the entire state of New Mexico, only four are on the list.
Perhaps because of the long distances between cities and the dealers stocking the multiple redundant brands that Chrysler sells.
Not quite like I remember when I lived in Ohio when the next town was a mere 20 miles away and it had a dealer too. Quite an over-saturation of coverage for such a big ticked product.
Now, in theory anyway, the remaining dealers could actually grow a bit since their closest competition isn’t their own sister brand right down the block.
Closest dealership to me closing is Terry Mowery Chrysler/Plymouth in Edison, Ohio, about 20 miles away
It appears Kansas City metro area is losing 50% of the dealers. 11 are closing. I believe all of the ones retained are full line Chrysler/Dodge/Jeep dealers; the ones that are closing generally were not full line. Several of the ones closing had 20+ years association with Chrysler.
I always feel sorry for the affected employees, but dealerships have closed in the past, just not in the immediate numbers that are happening now.
http://http://llnw.static.cbslocal.c…shipsclose.pdf
Here is the complete list of the Dodge Dealerships getting the axe from Dodge due to the restructuring process.
GM will be right behind them with closing a thousand or so more…
Detroit 3 dealers closing will mean the continued expansion of other dealers. In 1975 a friend of mine went bankrupt trying to profitably operate a Toyota dealership. In that town today the Toyota dealer is now the biggest seller of cars. And many other foreign dealerships have sprung up. My sister’s son married into car dealer family; they now have Toyota, Kia, and a Mitsubishi dealership.
In my area, no Detroit 3 dealerships have closed yet, but since returning from overseas in 2004, the following new and expanded foreign dealerships have opened:
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New Mercedes dealership, new BMW/Mini dealership, new Vokswagen dealersip.
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New Kia dealership, new Toyota dealership, much enlarged Nissan dealership, new Mazda dealership, new Mitsubishi dealership
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The Honda dealer has doubled his operation and moved to a new site.
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A large GM dealership has moved to a better location. No other Detroit 3 dealership has done anything.
If you visit middle age and older employees at these "foreign " car dealerships, they will tell you they all worked for a Detroit dealer at one time.
So, total employment will likely remain the same after the shake-out.
Broken link for me.
Try viewing the news story first on msnbc.msn.com "chrysler plans closing 789 dealerships’. Within the story there’s a link to the list.
A small local Jeep dealer(once also Peugeot) of 40 years (Stratham/Seacoast NH) is losing its franchise. It appears they have prepared as they have more used cars on the lot and will turn into a used car lot. The truth is the money is made in used cars anyway not new ones as no will ever have any idea of the price paid for the dealer to acquire a car vs a new one where it is all known.
You can drive a mere 5-10 miles away to another massive Jeep dealer.
FOR THE RECORD…these closings are not directed or chosen by the manufacturers. It was the federal government who did the choosing. It was also the feds that composed and sent the letter. I do not know the reasons behind certain dealers being chosen. There is a dealer in my area who bought the existing Chrysler franchise that had run it into the ground. This new dealer increased sales from 18 cars a month to over 50, shot the CSI scores from the toilet up through the roof and turned the sales staff around from a bunch of chiselers to an honest sales staff. Well, the new new owner after all that had his Chrysler & Jeep franchise yanked. But the original owners who have a Jeep franchise about 15 miles away got to keep it.
Any time a business lets the feds get their tentacles in the door it is trouble.
But, no GM dealers in my area got cut.
ON A MORE POSITIVE NOTE, the domestic makes have had to have learned some valuable lessons and this might put them back up on top in quality and reputation. Keep in mind the quality has improved dramatically lately and is better than most. After all, how does a stone in a creek get polished or wood become smooth? How does an aluminum fuel tank on a semi get a mirror finish? BY FRICTION! Friction applied correctly will polish what is crude and rough or unfinished.
Eleven Chrysler/Dodge/Jeep dealerships in MD will be closed. The formula quoted in the paper is to close low-producing units that are not associated with another Chrysler brand at the same location. Another nail is if the dealer has other, non-Chrysler franchises. The same article said that the closing Chrysler dealerships will be stuck with the cars on the lot. Can anyone confirm that?
If these dealerships were running active repair shops, doesn’t it stand to reason that the customers of those shops will continue to require repair and maintenance services? So, even though certain dealerships might close down, it seems that mechanics and service personnel should find work elsewhere.
I’m amazed that someone here is blaming the government for this. These companies have been mismanaged for years, selling sub-par products that did not meet the needs of customers. In a capitalist economy that means eventual failure. You can blame unions if you want, but the poorly engineered products put up for sale were the reason these companies failed. Toyota, Honda, Nissan, BMW, all manufacture in the US, and all are required to follow the same environmental rules and labor laws. Their products were seen as more desirable by American buyers. That’s capitalism. You don’t have to agree with the idea that Toyotas are better than Chevrolets. That’s your choice. But clearly a lot of buyers think that way.
The same article said that the closing Chrysler dealerships will be stuck with the cars on the lot. Can anyone confirm that?..
That is correct, Chrysler is NOT taking back any vehicles or parts. And this happens in something like 60 days. Not a lot of time.
I’m amazed that someone here is blaming the government for this…
If you are referring to my comment about the government tentacles, I can see how you could interpret that but all I meant was give them an inch and they will take several miles. Otherwise no blame was directed to the government, it is Chry & GM with poor business habits.
Here is a link that may work for you Oldschool. Scroll down the page and click on the red title about complete list of closing dealerships.
FOR THE RECORD…these closings are not directed or chosen by the manufacturers.
FOR THE RECORD…YOU’RE WRONG…The government had NOTHING to do with with the choosing or forcing the closure of these dealerships…What they did do was ask GM and Chryco a plan for recovery…they CHOOSE to close the dealerships.
Quote form GM…
“While the targeted dealers represent about 20 percent of GM’s total, they make only 7 percent of its sales, the company said.”
It’s a way for GM to increase profit.
Friend of mine in NY who has a Pontiac/GMC truck and Nissan dealership will be lost his Pontiac franchise…Selling off what inventory he has (at a loss). Wants to keep his GMC truck business…but he doubts he’ll be able to…At least he has his Nissan dealership.
Actually they did have a hand in it.