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Chrysler to cut 800 dealers on Thursday.
http://news.yahoo.com/s/ap/20090512/ap_on_bi_ge/us_chrysler_dealers
http://news.yahoo.com/s/ap/20090512/ap_on_bi_ge/us_chrysler_dealers
Your local Jeep dealer may be gone in two days.
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It's already happened where i live...
We had 2 Jeep dealerships close in the last few months, And another dealership absorbed their inventory.
This sucks because the good ones are now gone, And the remaining ones are not customer friendly when it comes to Jeeps.
Oh well, Those warranties were trash anyways
We had 2 Jeep dealerships close in the last few months, And another dealership absorbed their inventory.
This sucks because the good ones are now gone, And the remaining ones are not customer friendly when it comes to Jeeps.
Oh well, Those warranties were trash anyways
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I was trying to avoid this topic because its highly contiversial among dealers. Basically the chapter 11 is letting chrysler pick and choose which dealers stay and which go bye bye. Project genensis started 3 years ago and merged chrysler/jeep/dodge dealers together eliminating close to 800 dealers. Chrysler is trying to get to the Toyota number of 1500 stores, in which they sit at 3600 today. On Thursday dealers will see their fate..823 to be exact.
Here in AZ our prediction will be the rural stores closing after many years in business likely some will stay and get other franchises or become used car stores....I think the number in AZ is arround 20 Rural stores and maybe a few in the valley will get the AX. I believe we are ok we merged with a Dodge store back in December but others will not be so lucky. In a normal circumstances chrysler would have to buy back dealer franchises to terminate them, Today they are using chapter 11. Some dealers say there will be a round 2 in the near future, I doubt that chrysler/fiat would have enough $$ to terminate 800 more stores.
Jason
Here in AZ our prediction will be the rural stores closing after many years in business likely some will stay and get other franchises or become used car stores....I think the number in AZ is arround 20 Rural stores and maybe a few in the valley will get the AX. I believe we are ok we merged with a Dodge store back in December but others will not be so lucky. In a normal circumstances chrysler would have to buy back dealer franchises to terminate them, Today they are using chapter 11. Some dealers say there will be a round 2 in the near future, I doubt that chrysler/fiat would have enough $$ to terminate 800 more stores.
Jason
I don't think it matters if they close 800 are all of them. I don't see them being around in 5 yrs. anyway. Their product is junk. I had one of there K-cars the driver door literally fell off one day when I opened it. There were a lot of other issues with it also. Gave them two more chances purchased two trucks a 95 & 97 which were problems from the beginning.On the 95 they did 5 pages of warranty work on it and never did get it fixed and it had less than 3K miles on it. As stupid as I'm I bought the 97 and nothing but problems with it from the beginning also. So far my Jeep been OK but that could change any day.
Our only Jeep dealer closed its doors a few months back. Someone tried to buy it, but Chrysler would not play ball.
Unless both Chrysler and GM do something drastic, and I don't just mean laying off people and closing dealerships, then I don't see a very rosy future for either of them. I think Fiat's influence may be the saving grace for Chrysler, as clearly what Chrysler do isn't working. I don't see much hope for GM.
Unless both Chrysler and GM do something drastic, and I don't just mean laying off people and closing dealerships, then I don't see a very rosy future for either of them. I think Fiat's influence may be the saving grace for Chrysler, as clearly what Chrysler do isn't working. I don't see much hope for GM.
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I'm actually fairly nervous about the outcome of this. While we are a TINY dealership (we're scaled down to about 50 new cars, 15-20 used right now), our service side is one of the top in the nation, due to our local competitors being CRAP in terms of customer service/appreciation. So we shall see...
On a side note, a Kia rep inspected the Jeep store yesterday. They are thinking of adding a Kia franchise in the Jeep store, and moving Jeep up to our C/D store. So I may be the ONLY Kia salesman in the county!
As much as I'd miss Jeep, I can't say no to that label Mark W.
On a side note, a Kia rep inspected the Jeep store yesterday. They are thinking of adding a Kia franchise in the Jeep store, and moving Jeep up to our C/D store. So I may be the ONLY Kia salesman in the county!
As much as I'd miss Jeep, I can't say no to that label Mark W.
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You and I are lucky that our stores are 3-pack stores and are doing well.I was trying to avoid this topic because its highly contiversial among dealers. Basically the chapter 11 is letting chrysler pick and choose which dealers stay and which go bye bye. Project genensis started 3 years ago and merged chrysler/jeep/dodge dealers together eliminating close to 800 dealers. Chrysler is trying to get to the Toyota number of 1500 stores, in which they sit at 3600 today. On Thursday dealers will see their fate..823 to be exact.
Here in AZ our prediction will be the rural stores closing after many years in business likely some will stay and get other franchises or become used car stores....I think the number in AZ is arround 20 Rural stores and maybe a few in the valley will get the AX. I believe we are ok we merged with a Dodge store back in December but others will not be so lucky. In a normal circumstances chrysler would have to buy back dealer franchises to terminate them, Today they are using chapter 11. Some dealers say there will be a round 2 in the near future, I doubt that chrysler/fiat would have enough $$ to terminate 800 more stores.
Jason
There will be another Big dealer closing here in the valley.
The numbers for them are not up to par.
I have my ideas and I am sure you do too.
I also saw this coming back in '08.
......and hopefully they will not close Yucca Valley Jeep. That is where I bought mine and they have been great. I have only been there twice tho. Buy it. Have oil changed. No issues with my 08 whatsoever.:bounce:
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Yeah I hear yeah! I am not worried we ranked number 3 in our business center (CA,NV,NM,OR,WA,AK and HI) and #43 in the country last month.I'm actually fairly nervous about the outcome of this. While we are a TINY dealership (we're scaled down to about 50 new cars, 15-20 used right now), our service side is one of the top in the nation, due to our local competitors being CRAP in terms of customer service/appreciation. So we shall see...
On a side note, a Kia rep inspected the Jeep store yesterday. They are thinking of adding a Kia franchise in the Jeep store, and moving Jeep up to our C/D store. So I may be the ONLY Kia salesman in the county!
I hope you guys are ok, this whole think makes me sick to my stomach that guys like you and me will be unemployed and its a tough job market right now.
Jason
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It does, stores like mine will get more customers and sell more cars and trucks. The quality of our cars drastically improved since 1998, the older ones were problematic. This is bad for cunsumers in small towns that may have to drive hundreds of miles for warrantee or service needs.
Jason
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The Fabulous Tempe Dodge Chrysler Jeep
I am Asst Parts Mgr.
I will see you this weekend.
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