Why is Chrysler shutting down so many high performing dealers?

[Questor]

There are a few local stories here about very profitable top-in-the-country Chrysler dealers losing their dealerships. Why? How can putting your best sales organizations out of business possibly be good for the manufacturer?

Granted, Chrysler and other auto makers do not sell cars to people, they sell them to dealers, but still....?

[Chilachuck]

They donated to the Republicans.

Puts a new spin on "political spoils", doesn't it?

[rex6666]

their have been stories on the news that top dealers being closed and
lesser dealers staying open, seems that some dealers did not contribute
to the democratic party , GUESS which ones.
Looks like the new owners would have a say in what dealers stay open.

[Dixie Dude]

The government is cutting its nose off dispite its face.  If they close down GM and Chrysler dealers in "Republican" towns and neighborhoods where the middle class and upper class money is, and leaves them open in poor towns and neighborhoods, then the people with the money will just buy Ford or foreign owned vehicles, thus leading to even lower sales.  Now they are coming up with a plan to give you $3,500 to $4,500 to trade in your "clunker" and buy a new car or truck with better mileage.  Using tax money to pay for tax subsidised vehicles.  Insanity. 

http://finance.yahoo.com/news/Congress-to-consider-cash-for-apf-15474492.html?sec=topStories&pos=9&asset=&ccode=

[SHOOTALL]

Closing a big well stocked dealership makes sense . No one has sold many units lately right ? Most units on dealers lots are floor planned and the dealers have been paying on them . If a dealership is taken away then the dealer has to sell the cars by his close date or sell them with out a warranty ( dealer told me this ) or sell at a loss to another dealer ( who won't risk pizzing off the powers in charge ) . So inventory is reduced and remaining " dealers " lots will get new qoutas and the factory will reopen sooner .

[Questor]

Shootall:

That makes a lot of sense. Now I can understand why this may have occurred. It's definitely poor short-term reasoning, but that's consistent with a lot of government and business decisions lately.

[SHOOTALL]

I have bought a lot of Dodge trucks because of an honest dealer in our area . He made the cut but in areas where the good dealer did not Ford might see a boost in sales . If it wouldn't hurt the dealer i have worked with i would switch . As it is i don't need a truck 5 sitting on the lot not working now . So i have time to see it play out .