First of all my prayers go out to all who have lost their jobs in this violent industry.
Secondly, it was the gluttony that made this happen. Too many dealers , too many cars, but we could have resolved this over time.
The main reason I think Chrysler has done this today is the franchise laws may not hold out under the BK laws.Chrysler has announced that they will not buy any cars back , nor parts, not even leases on land and buildings.. This will make Chrysler easier to sell, not rebuild.( They have no reason to rebuild)
I just cant seem to get my mind around this at all.....less dealers means more sales? Friends having their business's taken away from them?....20-30,000 people our of work? Salespeople will find jobs,how about the title clerks,lot people,etc......local vendors that sold to these dealers......unreal! On this list are about 50 dealers that have been clients of ours over the last 11 years.....One dealer from where I grew up in Ohio,been in business 70 years....mind-boggling is right...the letter giving the reasons was interesting,300 vehicles per point as compared to 1500 per Toyota store or whatever the number was....are you kidding me?.Build better cars,market them in a better way,treat the dealer better......damn....just crazy....be great for the ones left,that's for sure.....but I guess they better be looking over their shoulder as well.
A friend in Illinois lost Chrysler and Jeep in one store and Dodge in another. They will most certainly give the franchises to a nearby competitor who had been Chrysler only. this will allow Chrysler to achieve their channeling objective. These were franchises that had been acquired at great expense.
There will be huge pissing contests over who takes down the signs that aren't going to be bought back!
As a former Chrysler Jeep Dealer I am shocked at some of the decisions that they have made. There is a Dealership in the Philadelphia area that is profitable and Capitalized correctly and performs pretty well for the area of Philly they are in. The fact that they would be allowed to destroy jobs with a company that is running better than them is incredible! I was told of another dealer who actually is on finance hold and has a keeper in it that they approved to remain a dealer. This dealer is probably close to BK and they let them remain. Someone should review each and every dealer before they are allowed to destroy more lives. If a dealer is profitable and capitalized right and is performing at an 80% or above MSR, they should not be allowed to do this. I believe that there are many dealers on this list that fit that description.
I can safely say that the criteriea used was arbitrary at best. We are a "D" "Volume" dealer. 400% MSR Sales Manager of the year. Business Manager of the Year.. et al We outsell every other Chrysler Franchise in RI and our surrounding area with a standalone Jeep Franchise. The local 1 mile away Chrysler Dodge franchise does less than 15 units a month Your classic Chrysler Mom and Pop and they are staying (for now). I am sure this story plays out across the country. Looks more like a revenge list in many cases than prudent business weeding out.. Especially in our case.. Absolutely no logical reason anywhere in this.