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66CUDA 29 May 2009 07:49 am

Chrysler Closings???
 
I'm a bit baffled not because Chrysler is closing dealerships due to their bankruptcy but rather which ones or better yet, how did they determine which ones to close? I live in South Jersey (well NJ but we consider ourselves the 51st state!) and all the reputable dealerships with the Chrysler five star rating are closing. There is one convienently located less than five miles from me. Its tucked away in the country and has a very small inventory (they list 150 new cars but it sure don't look like it) and never achieved the high five star Chrysler rating. What gives? They couldn't be out selling the other Chry. dealers within the 15 mile radius. Four stores in (2) Phila., PA , Cherry Hill & Wash. Twp., NJ have all closed and they are located in highly populated areas and located on major highways. They all had huge inventories. Any insight fellas.

66CUDA

Johns Steel Blue 29 May 2009 12:11 pm

Re: Chrysler Closings???
 
Supposedly it was based on sales performance.

soonercruiser 29 May 2009 02:09 pm

Re: Chrysler Closings???
 
Ah, yes! Decisions made in dark, smoke-filled rooms....:(

I'm assuming that almost everyone has seen the elderly Chrysler dealer talking on FOX News; he is losing all 3 of his dealerships! He can't understand it either. My take on it is....they did a bunch of things to look good on paper to the OBama administration weenies for restructuring, who aren't connected with the real world anyway. That is essentially what the dealer is saying too. :mad:

tandt14 29 May 2009 03:20 pm

Re: Chrysler Closings???
 
Quote:

My take on it is....they did a bunch of things to look good on paper to the OBama administration weenies for restructuring, who aren't connected with the real world anyway. That is essentially what the dealer is saying too.
Weenies....lol. I agree.

white 29 May 2009 03:48 pm

Re: Chrysler Closings???
 
Well sure Chrysler has screwed up, BUT does anyone think that our government is any smarter or really has a clue about running a car company. I sure don't.

sifu_scott 29 May 2009 03:51 pm

Re: Chrysler Closings???
 
Anyone remember years ago when Lee Iacoca was nominated for president? That would've been interesting...

prettybluewoody 30 May 2009 12:34 pm

Re: Chrysler Closings???
 
Heck, my dealer shut down a couple months ago: reportedly, Chrysler was 'consolidating' to reduce the number of dealerships in the area. (They'll be reopening as a Mini-Cooper dealership this summer.)

slartyblarfast 30 May 2009 02:18 pm

Re: Chrysler Closings???
 
As a Chrysler tech what we were told was the ones that where closed were the dealerships that refused to become Alpha dealers. That is: carry all lines Chrysler,Dodge and Jeep.

prettybluewoody 30 May 2009 04:46 pm

Re: Chrysler Closings???
 
Slarty: really? that's interesting, since my dealer had, for years!, sold Chrysler, Dodge and Jeep, and they used to sell Pontiac. All I do know is what the dealer said in the letter mailed out to customers: that it was because Chrysler wanted to consolidate, and have fewer dealerships in this area. (This was, by the way, a couple months ago: NOT the current round of closures.)

I don't know how their sales were, whether good, bad or average; I do know, from observation, that they had a large and very busy maintanence operation. (And isn't that one of a dealership's big moneymakers?)

Meanwhile, I've found a very good, well-recommended independant repair shop: NOT a Chrysler operation, and certainly not the other dealership Chrysler recommended in a letter they sent after closing down my old place.

BLUEH20 30 May 2009 11:48 pm

Re: Chrysler Closings???
 
Possible points of consideration:

5 STAR is program that is soley based on CSI scores and $$$ spent on the dealership infra structure and physical plant. CSI is esay to munipulate...Example - be the largest dealerhip in the US and never have to service what you sell in any quantity...Think of Kellog Idaho! One inhappy custmoer show up a dealership in another state--say washington--with a problem that Idaho promised would be fix immediately by now servicing dealer--come CSI--the customer is still pissed at Idaho and the CIS score is assigned to the non-selling dealer and his opprotunity for 5 STAR
is out the window.

If your infentory is floored by Chrysler Financial and you are not getting the traffic to cover those cost---Chrysler will drop you in a heart beat in todays economy and move the inventory to a performing dealership.

Sell more than just the Chrysler line--maybe not all three--but if you add in GM, Mazda and Subaru--Chrysler is going to drop you as you are expending 3 times the effort on your other lines....

Also as was mentioned in earlier postings--saturation causes harsh competion among the brand line--makes the dealerships less profitable and less able to strive and grow.

These are just a few of many issues that will influence Chrysler's decisions.


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