Chrysler moves to eliminate nearly 800 dealers, sending ripples...

Eliminate the only legal means of buying a car -- Yeah, that would be my way to help low car sales. What bonehead thought that one up -- It's almost as if the Government was running Chrysler.

And every dealereship is the definition of a small business. The owners are the managers and have put their credit on the line and employ locally. They want to continue paying wages, paying taxes and using local real estate. Rational thought would have let the marketplace determine which dealer would do well, and given each incentive to further risk their own capital to get more sales.

Years ago the US Suzuki Automobiles, a division of Japanese Fuji, ran into financial trouble and went to their US dealers for help. The agreement was that the dealerships that had made money from the Suzuki name were asked to share the pain and the individual owners mortgaged homes, borrowed, etc. The sales came back and the loyalry has been repaid many times over in both directions.

That's called integrity -- In the political world they are used to drastic, brutal changes when a new party takes over -- in business, customers and partners have long memories. And that's why government has, before now, been prohibited from managing businesses. This stupid move made permananent the decline of US Autos -- Every one of these talented dealers will be courted by Honda, Toyota, BMW, etc.

Employers employ, Governments govern.

Tom Mariner wrote:

Eliminate the only legal means of buying a car -- Yeah, that would be my way to help low car sales. What bonehead thought that one up -- It's almost as if the Government was running Chrysler.
And every dealereship is the definition of a small business. The owners are the managers and have put their credit on the line and employ locally. They want to continue paying wages, paying taxes and using local real estate. Rational thought would have let the marketplace determine which dealer would do well, and given each incentive to further risk their own capital to get more sales.
Years ago the US Suzuki Automobiles, a division of Japanese Fuji, ran into financial trouble and went to their US dealers for help. The agreement was that the dealerships that had made money from the Suzuki name were asked to share the pain and the individual owners mortgaged homes, borrowed, etc. The sales came back and the loyalry has been repaid many times over in both directions.
That's called integrity -- In the political world they are used to drastic, brutal changes when a new party takes over -- in business, customers and partners have long memories. And that's why government has, before now, been prohibited from managing businesses. This stupid move made permananent the decline of US Autos -- Every one of these talented dealers will be courted by Honda, Toyota, BMW, etc.
Employers employ, Governments govern.

And unions ruin!!

I just hope the corners of York & Roosevelt Roads get's their car dealerships back.

Why are the media and most people burying their head in the sand over this issue? We all knew this was coming back in the late 70s when the Imports starting coming in and we did nothing.

So, who's to blame? It's a 50/50 issue here. The unions have relentlessly held their grip on the big three automakers. Where else can you start an entry-level job at 60,000 a year and get taken care of the rest of your life? Who's idea was this? THE UNION!

The companies bear responsibility as well. Who HIRES these people that design American vehicles (i.e. Chevy Chevette). The 1980's had the most unattractive vehicles roll out of Detroit. You couldn't give me one of those cars. To this day, they are still behind on design and most importantly: QUALITY.

Face it, folks. The Auto Industry will never be the same. Both the unions and the company have to wake up and smell the coffee before it's all over.

Celozzi Ettelson wrote:

I just hope the corners of York & Roosevelt Roads get's their car dealerships back.

Doubtful as there is a brand new hospital being built on the property

Just sell cars on the internet, like everything else is.

It takes a little while for BS to run downhill but the entire government experiment with running car companies will shine a bright light of truth on the competency and wisdom of this decision. Why would anyone believe that the ability of car companies to sell cars is enhanced by a Congress that could not even run their own cafeteria at a profit?

I don't understand this at all.

Dealerships are independently owned. There is no recurring "cost" to Chrysler (or GM) that will now be eliminated by closing these dealerships.

Sorry, but I really think simple capitalism should prevail here. With declining sales, some dealerships will simply close on their own.

Plus, many of these dealerships are in small towns, far far away from other dealerships. They do indeed have few sales, but there is really no alternative for sales AND WARRANTY SERVICE for the customers serviced by these small dealerships.

Obama should be doing alot more to save American car dealerships!!! With so many dealerships closing there will be alot more people unemployed thats not saving the economy, this is making it worse!!!

im supposed to take delivery of a new GM today...i wonder if it will be there and what the deal will be...sucks.

tell me in the scheme of OBAMANOMICS, after doling out millions a few months ago to help out GM, Chrysler, and Ford, now GM closing 1100 dealers and Chrysler 800. that almost 2000 dealers with an average of hwat 30-40 employees each. that's another 80,000 people out of work...how does that help the economy...?

Sound Reasoning wrote:

I don't understand this at all.
Dealerships are independently owned. There is no recurring "cost" to Chrysler (or GM) that will now be eliminated by closing these dealerships.
Sorry, but I really think simple capitalism should prevail here. With declining sales, some dealerships will simply close on their own.
Plus, many of these dealerships are in small towns, far far away from other dealerships. They do indeed have few sales, but there is really no alternative for sales AND WARRANTY SERVICE for the customers serviced by these small dealerships.

What happened with GM specifically is that they spun off GMAC (for a good reason). With GMAC independent, they no longer had to give floorplan financing to every dealership. Instead, they weeded out the weakest dealers and refused financing. So, that was capitalism at work. But it was not enough and GM obviously had to make many more cuts.

Another thing to consider is that too many dealers in one area cuts the price of the car, hurting all the dealers. It's great for the buyer but bad for business.

Hopefully the reputable dealers will make the cut.
Lots of shady, rip-off dealers out there who take advantage of people every day.
You walk out of their dealerships feeling dirty.
I hope they turn out to be the ones cut out.

gman wrote:

im supposed to take delivery of a new GM today...i wonder if it will be there and what the deal will be...sucks.

Walk away from from it. what's good for the goose is good for the gander

ElmhurstMike wrote:

It takes a little while for BS to run downhill but the entire government experiment with running car companies will shine a bright light of truth on the competency and wisdom of this decision. Why would anyone believe that the ability of car companies to sell cars is enhanced by a Congress that could not even run their own cafeteria at a profit?

Just wait until you see what the loonie left does with the health care in this country.

Gidget wrote:

Obama should be doing alot more to save American car dealerships!!! With so many dealerships closing there will be alot more people unemployed thats not saving the economy, this is making it worse!!!

From the list of Chrysler dealers, and what I saw on the Nightly Business Report, many of these dealers have planned ahead by also getting Hyundai and Kia franchises.

Many of the others are parts of big chains. Bob Rohrman loses a Chrysler dealership and picks up a Ford one. Many on the list were owned by AutoNation.

There may be some dislocation, but the day of the family owning one Dodge or Pontiac dealership is just ending a few years sooner than it otherwise would. Also, it is the Bankruptcy Court, not the Obama Administration, that has to approve this.

A very sad day for the American Auto Industry and most Americans. With the exception of Ford we really have no more American made Autos. Who ever thought one would see the day that General Motors was worthless.

Man wrote:

tell me in the scheme of OBAMANOMICS, after doling out millions a few months ago to help out GM, Chrysler, and Ford, now GM closing 1100 dealers and Chrysler 800. that almost 2000 dealers with an average of hwat 30-40 employees each. that's another 80,000 people out of work...how does that help the economy...?

Should we just keep giving them millions and billions to burn through until they get back on their feet? All you are doing is delaying the inevitable

We're not only been waiting for this to happen since the 70's, it has been happening. Remeber Ogden Ave from Brookfield all the way to the city? Nothing but new and used car dealers.

Where are they now? Suburban Dodge moved to row of dozens of other dealers in Countryside in a former Mercury dealer. Anderson Ford is the only one left, and that is probabaly more out of nostalgia and tradition than by design (Rizza Ford is less than a mile away).

It's not the faults of the imports. We've had imports since right after WWII, mainly little European cars. What made Asian imports so popular as to almost kill Volkswagen and murder MG? American car makers, full of theselves.

Vynil tops didn't make up for quality. When your NEW Ford Granada has rust holes in it after one winter, or your Chevy Citation's brakes go out, an import made sense. A used 1979 Accord has more value than a three year-old Chevy Cobalt.

It's truly amazing to see all the fools who think that the decay of the big three automakers is something done by either Bush or Obama.

The domestic auto industry has been sick for years; the current economic crisis simply sped up the day of reckoning. The huge number of dealerships tied to Chrysler and GM compared with Honda and Toyota is just one more example of how Detroit's failed to see the handwriting on the wall.