Chrysler & GM closings - can someone 'splain this to me!?

[Tripper]

Maybe someone can 'splain this one to me. You're in the business of makin' & sellin' cars & u close outlets that are basically your salespeople! I DON'T get it. I've been in the sales business all my life & the LAST thing we EVER did was lay off salespeople! What gives?!?!? C & GM closing 2000-3000 dealerships. I must be really missing something... BIG time!!!

BoB

 

[Boltbreaker]

Two of the explanations I heard were because of production stopping and not being able to supply the dealerships, and they want to get Chrysler/Jeep/ Dodge under the same canopy.
Not that I agree with either one of the explanations!

There is alot of stir in Chicago about why they are closing dealerships that are actually profitable and successful too.

The big picture stinks. There is a big ripple effect from doing this. It's not just the dealers. What about the local businesses it will effect? I mean the local supply houses, restaurants, local tax revenue. One of the dealers by us pays $280,000 in sales taxes. I hate taxes but it keeps people working.
I'm done ranting

 

[Bonehead]

Yep. I read that they feel the dealerships are too close to each other, and they compete for the same dollar.

 

[Tripper]

Yep. I read that they feel the dealerships are too close to each other, and they compete for the same dollar.

That's what I don't get... WHY should they care as long as they're selling cars. Maybe they don't have enough $$$ to front them inventory.... that's the only thing that makes any sense to me.

BoB

 

[racer93]

I can explain it,....

OBAMA which stands for,..
"One Big A$$Mistake America

just my 2 cents

 

[rockb1]

Well ya see you have to cut those jobs so your executives can live in florida or where ever and commute via jet everyday to work. I mean you cant have a local guy running the business he just couldnt do it right. I think the cuts should come from the top. Maybe take a pay cut, spend a little less on the corporate credit card. Eliminate unecessary corporate travel. Just my opinion

 

[Tripper]

Well ya see you have to cut those jobs so your executives can live in florida or where ever and commute via jet everyday to work. I mean you cant have a local guy running the business he just couldnt do it right.

OH... NOW I understand!!! Thanks!

BoB

 

[moronthethrottle]

I hear ya Trip...

You can't cut the branches off a tree and expect it to grow.

 

[Sam_Fear]

You can't cut the branches off a tree and expect it to grow.

Unless your goal is to kill it, then it will flourish. Mulberry and Elm come to mind.

There are too many dealerships now. That is fact. I suspect new car sales go hand in hand with the housing market. Tightened credit for the foreseeable future means a tighter car market. None of the car companies want left over inventory on lots. So the options are to have fewer cars on each lot or fewer lots with more cars.

Do you think consumers want to go to a dealer that only has one or two of what they are looking for?

 

[cycledog]

I had read on msn that half of the stores that will be closed sell 100 cars or less a year. I know there are some small town dealers around here that are probably in that catagory.

 

[35Mastr]

I read this morning that GM is not going to renew 1,100 dealerships. They will be closing them down.

 

[sixtall]

It's a real kick in the teeth to all the mechanics/bodymen/sales staff/clean-up guys that need that 9 to 5 job to put food on the table. What I don't get is how can this be "all of a sudden "? I'd have thought businesses that large would have had the foresight to pare down little by little so that their bread and butter people wouldn't be kicked to the curb they way they are. **** rolls downhill; would have been nice to see some execs take a cut on their wages and expense accounts long before they got in the mess they're in.

 

[Sniper]

Oshawa full size pick up plant closed it's doors, they said the reason was demand for the fullsize is down enough to warrant the closing of the plant. Those kind of numbers (2600 lost jobs) really hurt an area, especially when it happens all at once. Not enough openings to absorb that many people.

 

[racer93]

You know that the dealers that they keep have the advantage on dealing now. It's not going to be good for the consumers, plus someone mention the mech/body guys. Think about that how many more will be hitting the unemployement and bottom line the dealerships have nothing to do with saving the Auto indrusties. The car makers have to figure out why the average GM sale for dealers is 400 and the average sells for Honda is 1200 per year. I ain't no rocket scientist but maybe it's the price. I buy American when I can but alot of younger people can only buy what they can afford.
Harley Davidson going to be facing the same thing, too many younger guys can only afford the crouch rockets and guess what when they get older they stick to the brand that has treated them right.

Oh well, the world is a changing,.......

 

[Unkl Ian]

If GM wants to do it, that only confirms
my suspicion, that it is a BAD idea.

 

[gassersgarage]

With franchise contracts, the only way to break the contracts is by declaring bankruptcy. Bad for the consumer, with dealers closing, where will the consumer go to honor warrantees?

 

[grouchy]

The government is invloved, 'nuff said.......

 

[Sam_Fear]

I read this morning that GM is not going to renew 1,100 dealerships. They will be closing them down.

Plus Chrysler's shutting 1,900 dealerships - 1/4 of 'em.

Tripper, you asked a kinda 'political' question...

SOAP BOX:
In this thread I've read the below quotes and several opinions along the same lines.
"...the local businesses it will effect..."
"...kick in the teeth to all the mechanics/bodymen/sales staff/clean-up guys..."
"...not going to be good for the consumers..."

I don't disagree, but somebody's got to pay the bill.

The facts are, the economy is in contraction and the amount of accumulated debt created previously is too large for the current economy to handle. That debt must be brought down to levels in-line with what the system can handle before a true recovery can come about. Companies, unions, individuals, and the government have all over leveraged their borrowing. Our whole economy has been going gangbusters for years on borrowed money.

Time to pay up. Well, a little, it's a big bill. And guess who is paying right now? GM, Chrysler, and all the people that are now getting burned by these dealerships closing. I'm sure a lot of these Joe's that are going to be unemployed didn't have any debt beyond their means, but they are now going to pay for those that did. GM and Chrysler filing bankruptcy didn't wipe the debt away, it just shifted it off their books onto someone elses.

I'm gonna go into rant mode if I keep going....

 

[livingdeadguy]

OBAMA which stands for,..
"One Big A$$Mistake America

just my 2 cents

i agree, he needs to butt out, look at the airlines they went bankrupt and now they are fine, they didnt ask for no stupid handout.