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
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