Tuesday, June 9, 2009

Take Your Car Dealership and ........

CHRYSLER ELIMINATING 789 of 3,200 DEALERSHIPS


Salesman Michael Friel surfs the web for news on the fate of his employer, John Flynn Chrysler Jeep in Philadelphia, Thursday, May 14, 2009. The dealership's name was on a list released Thursday as one of 789 dealers Chrysler LLC wants to eliminate as part of a restructuring process. (AP Photo/Matt Rourke)

Folks, this is just not making any sense.

Chrysler is now being permitted to go ahead with eliminating over 789 of their dealerships! GM will apparently be following suit shortly!?
Now, if this was a cost-saving move I could certainly understand.

BUT....Dealerships cost the manufacturers NOTHING!... The dealerships are billed for, and pay all their expenses themselves.
They get billed for advertising, warranty expenses......everything, right down to the paperclips! So the excuse that this is an expense cutting tactic is absolutely wrong.


Furthermore, if you try to use the logic that they are cutting the poor performers, or the ones that are too closely grouped together, or even the ones that don't perform adequate service obligations are ALL MISTAKEN. Many of the ones being cut are some of the company's best performers, in high traffic areas, with long-standing clientele and customer satisfaction records!!
Even the ones with lower sales records (when compared to imports, etc.) have only the fact that Chyrsler, itself has not been providing competitive vehicles at competitive prices with sub-standard warranties. Yes, the dealership network may need to be re-worked but there is no need to wipe out the existing field!!

But, they say they are going to try and be more competitive without 1/4th their previous sales force!! Talk about making sense???????

So what's going on??

POLITICS, my friends, POLITICS!! It all boils down to campaign contributions, who scratched who's back, and so forth!!
The dealerships that remain are selected alright.... by political persuasions. Yup, isn't that the good ole American way!?

So, now, with over 106,000 jobs being eliminated...and more coming soon with GM's dealership cuts......


Here's what you'll see alot of shortly:

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