It really is all about consolidating their dealerships to Chryler/Jeep/Dodge and not stand alones, all of which the three here is Seattle were. The dealership I have my SRT on order, they have recently moved from a stand alone, Dwayne Lanes Dodge, and moved under their Chrysler/Jeep dealership, Dwayne Lanes Dodge/Chryler/Jeep, a mile or so down the road. Now if they can only survive merger talks. Long live the MOPAR Gang!

 

Well frankly, I don't see why a dealership shouldn't be allowed to make their own call on that. For example, I think it would be an extremely stupid idea to threaten a dealership where we have bought a couple cars from that has been in business since 1914! For those of you who don't know this, that predates Jeep and Chrysler. Now they sell Dodge and Chrysler; however, they do not sell Jeep and considering how popular they are and how fast they sold Challengers, Chrysler would be foolish to threaten to shut them down, just because they do not believe it would be in their own best interest to sell Jeeps as well. It would be a blow to Dodge heritage to threaten to shut down an original Dodge dealership.

 

A dealer told me that it's just a way of "standardizing" the dealer network...of course this dealer was already a Chrysler/Dodge/Jeep dealership.....

 

Well, I can understand that. I just don't think it is a wise strategy is all. Some areas that have a lot of snow and mountains are probably not going to be looking at owning many Chryslers as much as they would want to have Jeeps and Dodges. Some areas that are paved and in warm climates, year-around are likely not to need as many Jeep dealers. I trust the owners of the dealership more than I trust the corporate level. It's simple logic that if a dealer knew there was a market for these other models in their area, who wouldn't go ahead and offer these models anyways. I believe the ones that don't have them choose not to have them because they have figured out that there is insufficient demand to justify offering it.

 

Find this on the NADA site....

NADA Estimates 700 New Car Dealerships Will Shut Down In 2008
The Financiapocalypse is threatening to nearly double new car showrooms expected to go out of business in 2008 versus 2007 like Bill Heard Chevrolet. The National Automobile Dealer's Association estimates as many as 700 will go under before the ball drops in Times Square in just over two months. Dealers are being squeezed by reduced sales on one end and a lack of cost-effective financing for floor plans and inventory on the other. The increase in closures presents Detroit automakers with something of a crisitunity: Burdened with excess dealer capacity, Ford, Chrysler and GM could all stand to shed several hundred showrooms apiece. But with each closure, fewer cars get sold, and the Detroit Three can't afford to lose a single sale right now.

 

This is why I think this is a bad idea.

 

While I see what you are saying RLSH in needing every sale, its the ability to be effective and effecient in the process. Get this on Toyota vs GM. While GM continues to sell more cars, they do so with many more dealerships. Sure Toyota is feeling the pinch right now and wont take over the number one slot from GM, but they still are better at selling than GM.

As of Aug 1st:
GM maintained 6,776 Dealers and had sold 1,822,575 vehicles, or about 269 /dealer
Toyota maintained 1,234 dealers and had sold 1,437,509 vehicles, or about 1,165/dealer

So while GM/Ford/Chryler need every sale, building, marketing , and selling high quality vehicles has to be done more effectively by the three.

 

Apparently Lithia in Wenatchee has been sold to another dealership...

 

Yes; however, there is a factor that has not been taken into consideration. Part of the reason why GM has so many dealerships is because they also have them located into more rural areas. The advantage of keeping them in the rural areas is it maintains a loyal customer base. Even if people purchase their GM product at a larger dealership, they will choose one over a Toyota simply because they have a dealership in town. Believe me, I've studied this. As soon as GM leaves the town, they will say, "If GM doesn't care enough about me, I'll go buy a Toyota instead." The problem isn't the dealerships, it is the models they have produced. Even though GM has some of the best models currently on the market. Years of horrible efforts such as the FWD Grand Ams, Malibu (all before this model), Alero, Achieva, Cutlass Calasis, Cutlass Ciera, FWD Cutlass Supreme, Lumina, Aurora, Sunbird, Sunfire, Cavalier, and quality problems in their truck line is why GM is having trouble bouncing back.

For Chrysler not educating their customers about the need to flush the transmission fluid every 30K and inform them about only using their transmission fluid was the first strike. The head issues with the early Neon based engines and 2.7L oil sludge problem was the second strike. The way Daimler destroyed their product line-up is the third strike.

For Ford, the problems they had for years with the Essex engine, AXOD, SHO V8, 2.5L, teething issues of the Modular, drop in Cologne quality in the SOHC transfer destroyed their reputation for quality. Letting cars like the Taurus which were good when they first came out, turn into a car only fleets wanted destroyed their image. Keeping the Crown Vic forever without updating did this as well. Putting a bad effort in the Contour didn't help.

Toyota's time is coming when their mistakes will start erode their reputation.

 

It’s amazing to he how the “Big Three” just don’t seem to be listening to the marketplace…just look at all the excitement and the spotlight the new Challenger bought to Chrysler….and the same with the Camaro/GM (there’s no accounting for taste), and even the new models of the Mustang, for Ford…………..Maybe if Detroit offered what the consumer really wanted they wouldn't be in the position they are in today….Now, I realize that the three vehicles above could be considered “limited” in their appeal when judged against the overall marketplace….but it’s a start…..Detroit, open up your ears and start offering what people want…not what you want to build (if it’s not already to late)