The word is out, both Chrysler and now GM have notified thousands of car dealerships that they are no longer wanted or needed. For two companies try to remake themselves as being a place to buy the new green powered car and high mileage hybrids they are not too smart.
The way I see it you can have the best of the best but if there is no place for a potential customer to shop and buy, except perhaps the closest dealer who is now 50 miles away why would you want to buy. After all service is part of the package and I for one don’t like the idea of a 50 mile or more hike just to get my car serviced or paying the towing bill if it breaks down and needs repair.
So the long and short of it is: fewer dealers translate to fewer new car sales.
Now if the Japanese and other foreign auto manufacture are smart they should go shopping for the best of these auto dealerships, those who have good volume and customer loyalty to place their vehicle side by side with the remaining GM and Chrysler cars the dealer is stuck with. That way when customers come back for service or looking for a new or used vehicle to replace the Pontiac or “fine Corinthian leather” car they own or lease they can stay with the sales and service people they trust, the bond will not be broken.
As to the legal aspect, hey baby you ditched me so see my lawyer. Buy the way did I tell you Mr. GM that he also represent 50 other dealers in our region!
Now as to the real reason all this is happening: 1) US auto makers hired CEO’s who couldn’t predict the current weather outside even if they stuck their head out the window. So who could ever guess the days of gas guzzling SUV, Trucks and Tanks would come to an end. After all the day of the Super Cars did, the neighbor’s big 4 door brown bomber did and so did your Father’s Oldsmobile.
2) Our own government helped foreign auto makers set up manufacturing plants located in the South with sweet heart deals like low labor rates, no unions, tax incentives and who know what else.
3) The government is willing to bail out both U.S. and foreign banks to the tune of 100’s and 100’s of Billions of dollars for horrible banking and financial practices and yet get upset about loaning U.S. auto makers 30 billion.
So now that the news is out, ask yourself this question: Would you buy your next car at a dealer who may be out of business by the time it’s due for the first service checkup?