Jeep dealer closing

[Darton]

Just heard on the local news that all 8 Chrysler dealers in my area are being shut down. The local Jeep dealer says they only have until June 9 to sell and service Jeeps.

[tommudd]

Something like 789 across the country are closing:Wow1:

so what's going to happen to all of the Jeeps sitting on those dealers lots now, ship to another or BIG SALE?????

[Zeero]

Fun times...I wonder what will happen when Fiat/Opel comes in...:Wow1:

[LIVEABOARD]

Chrysler Lists Dealers on Death Row

Pertaining to Chrysler LLC's filing today (May 14, 2009), here is a list of dealerships slated for closure, subject to Court approval.

CLICK HERE TO VIEW PDF

[JPFreek1]

Yep, something like 20% of all Chrysler/Jeep dealerships are closing. As for what will happen to inventory, good question.

[6Pins]

I counted 275 on the list that are Jeep dealers. I know my local one is on there as is the local Chrysler dealer. That means Ford is the only domestic manufacturer in town.

According to Bloomberg, the notice is pending a 3 June 09 court date and any unsold inventory will be transferred. I'm not sure if there are any caveats on existing inventory between now and then, but there could be some deals out there.

Interestinly, those dealers only made up 14% of the sales figures, so I can see why Chrysler is cutting them out.

[LIVEABOARD]

Out of the 789 dealers to be dropped,

345 (44%) are dualed with a competitive franchise.
83% sell more used cars than new, anyway.

50% 392 sell less than 100 new vehicles a year.

[LIVEABOARD]

Tmorrow GM list 2039 dealers

[cnynrat]

Did a quick scan of the list to see how it will affect my area (So Cal). Looks like ten dealers will be closed in the area from the central coast down to San Diego. Of the ten, three are dealers that only carried the Jeep brand. Six of the ten closures are in the greater metro-LA area.

No real surprise, but it looks the impact will be felt most in smaller cities and more rural areas.

[RedRocker]

I'm trying to grasp the logic of how eliminating dealers will help sell cars.
Must be part of a brilliant stealth strategy to make your product hard to
find and service so people will want them more.

[nwoods]

Where is the list?

[seanz0rz]

Dealerships cost the parent company alot of money, and if they are failing to move cars, they aren't worth paying for.

one huge reason the pentistar is being hit so hard in general is no one wants the cars they sell. the jeep wrangler unlimited and the dodge challenger are the only two vehicles they make that i would ever consider, and they are honestly far down on my list due to questionable reliability and the fact that they might not be around in the future for service and parts. the demand for vehicles has been shrinking in general, but the demand for, quite frankly, poorly engineered and constructed vehicles is even lower. they are unable to sell vehicles as quickly as they produce them, thus resulting in a huge glut of generally unwanted vehicles. to move these off the lot (every day they sit there they cost the business money), they must drop the prices, which in turn drops the resale value of used cars. resale values dropped a full 6% in the one week period after Chrysler announced their bankruptcy.

its really sad, as i think chrysler could have had some amazing products over the years. i love the new unlimited, but not enough to buy one, even if i had the money.

compared to the products of the other two domestics, chrysler fails miserably. the recent quality of ford is simply amazing. i often times find myself going "wow, i cant believe this is a ford!"

[seanz0rz]

here is the list:

http://online.wsj.com/public/resources/documents/Chryslerdealerlist05142009.pdf

[computeruser]

Darn. The one two blocks from my house that I can walk to is closing. Geez.

[datrupr]

6 are getting the axe in Arizona, 2 from the Phoenix metro area. Darner Chrysler/Jeep in Mesa and Performance Dodge in Phoenix.

[dieselcruiserhead]

Unreal. Really, I never imagined the day...

[highlandercj-7]

I am jacked on this subject. The oldest Jeep dealership in the world "Corwin Jeep" in Hickory PA is on that list too. I want to know who we need to contact to try to get folks off that list. It's an outrage. I do not know how closing dealerships could help especially outstanding ones.

[mtnbike28]

I remember hearing about the plans to reduce dealers a long while ago. I think the idea was too many dealers in an area competed against each other selling the same product. So a buyer could go to multiple dealers and play them off each other, meaning less profit for the dealer and manufacturer?.... at least that was how I understood the idea.

[tommudd]

GM is announcing today how many they are closing so its happening to all of them

[nwoods]

here is the list:

http://online.wsj.com/public/resources/documents/Chryslerdealerlist05142009.pdf

Thanks. Seems that only one dealer in Orange County CA is closing, the one in Garden Grove.

I wonder what "closing" really means? I always thought the dealers were independantly owned, and simply had licenses to sell the marquees. I think the dealerships could remain, and turn to used sales and service or alternate marquees, assuming there was any kind of volume to keep them afloat?

[computeruser]

I remember hearing about the plans to reduce dealers a long while ago. I think the idea was too many dealers in an area competed against each other selling the same product. So a buyer could go to multiple dealers and play them off each other, meaning less profit for the dealer and manufacturer?.... at least that was how I understood the idea.

I'm not sure how else the idea could be understood.

Seriously, I have (soon to be had) a Jeep dealer 3 blocks from my home. A 10 minute walk. I could drop my car off, walk home, and then walk back when the work was done. This was a point in favor of owning a Jeep. Now I would have to (a) find a new dealer or shop to utilize, (b) make arrangements to be picked up and dropped off anytime service is needed, and (c) lose a convenience that would have been a strong motivator to buy another Jeep product in the future. How is Jeep-Chrysler better off for this choice? I don't get it.

Oh well, same thing happened back home - both of the Jeep dealerships within a reasonable radius of my parents are closing. My mom has a new Jeep under warranty. She'll now have to either drive to the 'hood for warranty service or drive 40 minutes across town. Wow, definitely better for the customer and the brand.

Nuts.

[troy]

Thanks. Seems that only one dealer in Orange County CA is closing, the one in Garden Grove.

I wonder what "closing" really means? I always thought the dealers were independantly owned, and simply had licenses to sell the marquees. I think the dealerships could remain, and turn to used sales and service or alternate marquees, assuming there was any kind of volume to keep them afloat?

They interviewed a couple Chrysler dealers on the news last night and both said they will continue to service and sell used cars. What I wonder is what is happening with the contracts? I bet the dealers will get a decent payout to close their doors and end their contracts early, similar to executives leaving a company.

I did a reasearch report for a MBA class on dealerships. Per unit they make much more off of used vehicles, but the "brand" does bring lots of people in with trade ins. I would guess that if they were running a good business, they should be able to make something of a used sales and service. Also, I've seen reports on auto repair business is booming.

[LIVEABOARD]

NO under bankrupcy Chrysler will buy back parts but not cars thats all here in Indiana other dealers alreadt talking about buying cars from closing dealers