bhs7695 185 Report Share Posted May 14, 2009 T & T Jeep in Bluefield is one of them. http://money.cnn.com/2009/05/14/autos/chrysler_dealer_closings/index.htm?postversion=2009051410 Chrysler closing 789 dealerships Troubled automaker tells court it wants to shutter about a quarter of its dealers. NEW YORK (CNNMoney.com) -- Chrysler LLC will close down 789 dealerships, or roughly 25% of the current number, according to a plan filed in bankruptcy court Thursday. Chrysler had a total of 3,181 authorized dealers in operation at the time of its April 30 bankruptcy court filing, according to court filings. Just over half of that number accounted for more than 90% of Chrysler sales, according to the filing. The dealers being shut down represent 14% of Chrysler's total sales, the carmaker said. Auburn Hills, Mich.-based Chrysler does not believe closing these dealerships will adversely affect sales. "After a period of time, and substantially improved marketing and investments, overall sales in the reduced network are anticipated to grow beyond current sales levels within the existing network," the carmaker said in its filing. Chrysler's plans to close the dealerships must still be approved by U.S. Bankruptcy Court Judge Arthur Gonzalez, who is overseeing the government-led restructuring of the company. "It is with a deep sense of sadness that we must take steps to end some of our Sales and Service Dealer Agreements," Steven Landry, Chrysler's executive vice president for North American sales said in an announcement. "The decision, though difficult, was based on a data-driven matrix that assessed a number of key metrics." About half the dealerships being closed sell fewer than 100 vehicles per year, Landry said in a conference call. About 44% also sell vehicles other than Chrysler products, he said. Dealers being closed should be receiving overnight letter delivered by UPS this morning, Chrysler President Jim Press said in a conference call. Under the plan filed with the bankruptcy court, the dealerships will have until June 9 to close their Chrysler franchises. ABC Motors in Valley Stream, N.Y., is one of the dealerships on the list to be cut. Owner Aaron Beecher said he will have to lay off all but 8 or 9 of his 25 employees and will sell only used cars. "I feel like I'm on death row," said Beecher. The Obama administration, which has pumped more than $7.2 billion into the tottering automaker, has said it hopes the move Chrysler through bankruptcy quickly by creating a shell company that will be owned by a combination of the government, the United Auto Workers union and Italian carmaker Fiat. In assessing Chrysler's viability, the Treasury Department found the automaker could not survive as a stand-alone company. Chrysler had already been in discussions with Fiat about a partnership. The current plan calls for Fiat to assist Chrysler by providing engineering for small and midsized cars. General Motors (GM, Fortune 500) has said it wants to cut 42% of its dealership base to 3,600 by next year. Fritz Henderson, the GM chief executive, said on Monday that it would soon start notifying dealers as soon as this week. For the automakers, closing dealerships is a tricky business. For one, Chrysler and GM won't save substantial amounts of money by closing dealerships, which are independently owned businesses. At the same time, both GM and Chrysler have no choice but to greatly reduce their dealerships ranks, which have grown far larger than sales demand requires. The goal is a leaner, more profitable, network of sellers. In ordinary circumstances, automakers' efforts to close dealerships have been stymied by state laws that protect franchisees. Bankruptcy court judges, however, can override such laws. Chrysler has been working to consolidate its dealerships by helping to create more that sell all three of Chrysler's brands - Dodge, Jeep and Chrysler - under one roof. About 62% of Chrysler dealers are consolidated now but after these closures 84% will be, Chrysler executives said in a conference call. CNNMoney.com staff writer Aaron Smith contributed to this report. Quote Link to comment Share on other sites More sharing options...
Hacker 82 Report Share Posted May 14, 2009 Do have a link to the list of the dealers being closed. Quote Link to comment Share on other sites More sharing options...
Beamerball 566 Report Share Posted May 14, 2009 (edited) Pope Family in Marion, Alley's Dodge and Don Hill Pontiac in Kingsport on there too. List at the bottom... http://www.foxbusiness.com/story/markets/industries/transportation/chrysler-sends-termination-letters-dealers/ Edited May 14, 2009 by Beamerball Quote Link to comment Share on other sites More sharing options...
BigBlueAlum 12 Report Share Posted May 15, 2009 By TOM KRISHER and DAN STRUMPF, AP Auto Writers Tom Krisher And Dan Strumpf, Ap Auto Writers – 16 mins ago DETROIT – A day after Chrysler LLC told a quarter of its dealers that it won't renew their contracts, owners of General Motors Corp. dealerships are awaiting word on whether they will be next. GM said it will notify 1,100 U.S. dealers on Friday that their franchise agreements will not be renewed. Dealers expect to hear either by telephone or FedEx letters that will begin arriving Friday morning. GM spokeswoman Susan Garontakos said the company will not make public a list of dealers to be cut, leaving the decision to release information to individual business owners. The company has scheduled a conference call for noon Friday to explain its dealer reduction strategy. The cuts will come just a day after crosstown rival Chrysler announced it was dropping 789 of its roughly 3,200 dealerships by around June 9. Both companies have too many dealerships for too few sales are slashing costs as they race to restructure. GM's dealer cuts are part of the company's plan announced last month to cut more than 2,600 dealers by 2010. The remaining cuts will come from closed Saturn and Hummer dealers, along with 400 dealers that the company expects will close voluntarily. Another 500 would be consolidated into other dealerships. The GM dealer cuts are likely to have a much greater impact than Chrysler's. While many Chrysler dealers also sell other brands and will stay open after losing their franchises, a large number of GM dealers sell only GM vehicles. So if their franchises are revoked, they run a greater risk of closing for good. In both cases, the cuts will cost thousands of jobs, create holes in local tax bases, eliminate community pillars and create economic ripple effects across the country. Chrysler is operating under bankruptcy protection, so it is likely to have an easier time tearing up its franchise agreements with its dealers than GM. A hearing is scheduled for June 3 in U.S. Bankruptcy Court in New York for the judge to determine whether to approve Chrysler's motion to fire its dealers. Chrysler executives said Thursday the company is trying to preserve its best-performing dealers and eliminate ones with the weakest sales. More than half of the dealerships being eliminated sell less than 100 vehicles per year, they said, and account for 14 percent of U.S. sales. Chrysler has received $4 billion in government aid, while GM has received $15.4 billion. GM is continuing to restructure out of court and faces a government-imposed deadline of May 31 for doing so. Several difficult hurdles remain, and many experts say that it is all but inevitable that it will follow Chrysler into Chapter 11 bankruptcy. To remake itself outside of court, GM must persuade its bondholders to swap $27 billion in debt for 10 percent of its risky stock. In addition, it must work out deals with its union, announce factory closures, cut or sell brands and shutter dealers. Swapping its bond debt for equity may be its most difficult task. The company is trying to get 90 percent of its bondholders on board for the so-called debt-for-equity swap. A committee representing the bondholders has rejected the swap, saying it unfairly favors the government and the United Auto Workers union. They have counteroffered seeking a 58 percent ownership stake, which the automaker in turn rejected. On Thursday, GM said that bankruptcy is possible if it doesn't get enough takers on the exchange. If that happens, it likely would sell most of its assets to a new company and liquidate the rest, the automaker disclosed in a regulatory filing. The automaker also says it could seek court approval of its reorganization plan even if creditors vote against it. Shares of GM closed Thursday at $1.15. Quote Link to comment Share on other sites More sharing options...
VHSLhelper 571 Report Share Posted May 23, 2009 "For one, Chrysler and GM won't save substantial amounts of money by closing dealerships, which are independently owned businesses." How much does a dealership "cost" an automaker? I know they pay for x% of their advertising, and may provide those 50' high signs, but what else? And don't count those "dealer incentive" packages, because that gets paid anyway (If I sell 10 and you sell 10, and I close, then you sell 20, they may axctually pay out more based on the volume). ---- "At the same time, both GM and Chrysler have no choice but to greatly reduce their dealerships ranks, which have grown far larger than sales demand requires. The goal is a leaner, more profitable, network of sellers." What do they care HOW profitable dealer X is? Are the dealers actually profitable? Sad state when the middle-man makes money while the maker doesn't. Quote Link to comment Share on other sites More sharing options...
bhs7695 185 Author Report Share Posted May 24, 2009 I thought this interview was very interesting..... clip 1 of 3 http://www.foxnews.com/video2/video08.html?maven_referralObject=5179758&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/ clip 2 of 3 http://www.foxnews.com/video2/video08.html?maven_referralObject=5179758&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/ clip 3 of 3 http://www.foxnews.com/video2/video08.html?maven_referralObject=5179758&maven_referralPlaylistId=&sRevUrl=http://www.foxnews.com/ Quote Link to comment Share on other sites More sharing options...
bucfan64 309 Report Share Posted May 24, 2009 HYPER INFLATION IS COMING............. 20% Interest rates and higher are on there way, this is going to be as bad as the 70's or worse, I think the prime reached 21% under Carter. If you are looking for low interest rates now or never........... Quote Link to comment Share on other sites More sharing options...
Lance 228 Report Share Posted May 25, 2009 HYPER INFLATION IS COMING............. 20% Interest rates and higher are on there way, this is going to be as bad as the 70's or worse, I think the prime reached 21% under Carter. If you are looking for low interest rates now or never........... i think it would be good for everyone if the rate would get back up to around 6% or so...let's get there before we start worrying about 21% though ok? I mean seriously it's been flatlined for years...I don't have a ton of money in the bank myself, but people who are retired and depend on interest rates to at least have a heartbeat have not had the best of times the past few years. I just don't see it. Quote Link to comment Share on other sites More sharing options...
bucfan64 309 Report Share Posted May 25, 2009 Guarantee it will happen, but like you HOPE LIKE CRAZY IT DOESN'T! Quote Link to comment Share on other sites More sharing options...
Lance 228 Report Share Posted May 26, 2009 If I were Chrysler I would have just made another K car...lol Quote Link to comment Share on other sites More sharing options...
.png.01bb665814ffc257795fe158cb2045c7.png.8a531ac878a82772b21014d7a6167582.png){kind=logo}
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.