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Thread: Car Owners - Is Your Dealer Going OOB?

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    Default Car Owners - Is Your Dealer Going OOB?

    If so, what does it mean for you?

    This article explains what is happening and its justification and implications.

    Meltdown 101: Why GM, Chrysler want fewer dealers
    By BREE FOWLER – 5 hours ago
    Both General Motors Corp. and Chrysler LLC have announced plans to dramatically reduce their networks of thousands of dealers, saying that the moves are needed to cut costs as part of their restructuring efforts.
    But the dealers argue that they don't cost the automakers much of anything — in fact, they make money for the companies, they say — and that the termination of the nearly 2,000 franchises between the two automakers could result in the shuttering of many of the businesses and the elimination of thousands of jobs.
    Also, if the dealers are forced to close, cities around the country could be left with empty buildings, vacant lots and possibly hundreds of thousands of dollars in lost tax revenues.
    All of which raises the questions: Just how much do dealerships actually cost their respective automakers? And what other incentives do the companies have to pare back their dealer bases?
    Here are some questions and answers about why the automakers are ending their franchise agreements with so many dealers....

    http://www.google.com/hostednews/ap/...wFVEAD98MPHNG0

    from API
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    my nearest Chrysler dealer is located 'too close' to another Chrysler dealership and is going to end it's franchiseship with Chrysler. An article in my local small town newspaper said that the dealership is going to focus on new and used Hybrid and alternative powered vehicles. Now that is forward thinking.
    Oh Canada, we stand on cars and freeze...

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    LoL. I can't help but laugh at this, we sunk how many billions into a failing industry to prevent it from from doing what again? Oh, right... failing. I have just one question... since chrysler and gm have now both declared bankruptcy (or will be shortly) can we have all our money back??

    Yah... this is one of my million reasons for driving a foreign car. VW is not effected at all by any of this.
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    Default Re: Car Owners - Is Your Dealer Going OOB?

    Actually my little brother is a car dealer ... and he had the opportunity to sell out of an urban Chrysler dealership and buy into a rural Ford dealership last year !

    According to my little brother there are a lot of aspects to the 'axed' Chrysler dealers that the news media really isn't telling. For one thing, the 'axed' dealers inventory of unsold cars becomes the financial responsibility of the dealers because Chrysler will not 'take them back'. This amounts to a 'forced sale' by Chrysler, which will earn profits for the corporation but bankrupt a lot of 'axed' dealers who will be forced to either dump their inventories at a loss or finance the 'carrying costs' themselves.

    In truth it was not Chrysler corp. that called for the 'axing' of Chrysler dealers ... it was the White House ...



    But at any rate, remaining Chrysler dealerships still have to worry about trying to 'sell' would-be new car customers on the idea that Chrysler Corp is going to be around for as long as they are likely to own their new car. This is a tough sell. So to get around this issue, Chrysler's in-house financing arm GMAC is now willing to write new car loans at below market interest rates for would-be buyers with low credit ratings who would have difficulty getting financed through conventional auto lenders. This basically gives Chrysler ( and GM ) a competitive advantage, by enabling the sales of a greater number of new cars to buyers whose down payments / credit ratings / ability to repay is questionable. No worries though since the money GMAC is using to fund these 'subprime' auto loans comes from the US taxpayer via TARP !

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    Bankruptcy is NOT dissolution.

    The manufacturers will be back, greatly changed, and you will still see those brands, warranty, replacement parts. Just not in all the places they were before.

    The way Chrysler is doing their deed is going to make lots of problems for formerly loyal dealers. This is the point of the lawsuit.

    'It's not personal; it's just 'business.'
    I loved going to strip clubs; I actually made some friends there. Now things are different for the clubs and for me. As a result I am not as happy.

    Customers are not entitled to grope, disrespect, or rob strippers. This is their job, not their hobby, and they all need income. Clubs are not just some erotic show for guys to view while drinking.

    NOTE: anything I post here, outside of a direct quote, is my opinion only, which I am entitled to. Take it for what you estimate it is worth.

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    Quote Originally Posted by JayATee View Post

    Yah... this is one of my million reasons for driving a foreign car. VW is not effected at all by any of this.
    I drive a Ford and it is not involved in this. Of course in my circle if I drove anything but an American or Canadian car I would be ostracized; it is a buy American thing.

    I hope Germans buy VIPs from you.

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    I agree with you on this, Earl. I have a chrysler at the moment, and let me tell you, they have the worst customer service. If you get late on your car payment (over a month), and they call you up and tell you they need to have a date to make a payment.... Well, if that date isn't in the next few days they tell you it's not good enough!

    I had one guy tell me (i'd paid half of one car payment, and none of the most recent one) that i needed my car to get to work, and that they were going to ruin my credit. of course, i got pissy and replied, 'yeah, go ahead. i live a mile away from work and i'm too fat, so maybe i'll lose weight by walking.... and do you think i care about my credit, i'm filing chap 7!' (was only thinking about it at that time). To which he goes back to, 'well, you signed a contract, and we legally have the right to take the car.'

    over, and over, and over again.

    oh, and did i mention they'd call up and be like this? "Hi, this is Mr. Barrington from Chrysler financial.... It is absolutely imperative that you call me back before 9 pm tonight regarding a business matter." Um, that's great. It's 8:53. Douchebags.

    However.... Ford thought ahead. They were trimming down their staff long before this ever started, and they got their financing in order. I keep getting worried, every 3 months they make more cuts and since my dad works there, it gets a bit nerve wracking....

    My next car will be foreign or a Ford.

    Oh, but speaking of Germans buying VIPs, that's why I bought a Chrysler in the first place! We would have the Daimler engineers come into my bar (I'm from Detroit), and I was the only girl that spoke German. Made a LOT of money off of them.

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    on a less bitter note, however, it was sad. The dealership I leased my car from was one of those that had it's contract yanked, and all the service guys were regulars.

    I really think it's bullshit that the dealers had 3 weeks to get rid of 8 months of inventory that was crammed down their throat to begin with. This is why the companies went BK, because of poor planning. *headslap*

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    That's right the Germans ran Chrysler; maybe the Italians can do a better job.

    There was some funny dealings with Chrysler's bankruptcy; I think Fiat got a sweet-heart of a deal but the US will still have over 50% ownership until all debt is paid back.

    I don't think the auto credit companies are run by car people; they are run by bankers.

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    Default Re: Car Owners - Is Your Dealer Going OOB?

    true, in fact chrysler financial's website clearly states that they are not in bankruptcy. however, poor customer service as i mentioned above can turn many consumers off to the car itself, which is definately true not only in my case, but in several other peoples as well.

    you can't treat customers like deadbeat dicks because they're trying to come up with options.... when the guy told me i needed a car to get to work, it was literally over $150 - I'd already paid over half the payment.

    THAT is what pisses me off the most. it's quite sad, too - i like my chrysler, but the financial arm off it totally killed off any interest i have in buying mine or buying another.

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