Grendel
05-15-2009, 06:20 PM
Chrysler closing 789 dealerships
NEW YORK (CNNMoney.com) -- Chrysler LLC will close down 789 dealerships, or roughly 25% of the current number, according to a plan filed in bankruptcy court Thursday.
"With regret, this letter is to inform you that on May 14th, 2009, we are filing a motion in bankruptcy court rejecting the Sales and Service Agreement(s) between Chrysler Motors LLC and the dealership listed above," Chrysler said in letters sent to the dealereships. "Upon approval from the court, your agreement will be rejected on or about June 9, 2009."
The letters began arriving Thursday morning.
Chrysler had a total of 3,181 authorized dealers in operation at the time of its April 30 bankruptcy court filing, according to court filings. Just over half of that number accounted for more than 90% of Chrysler sales, according to the filing.
The dealers being shut down represent 14% of Chrysler's total sales, the carmaker said. (continued) (To view links or images in this forum your post count must be 5 or greater. You currently have 0 posts.)
GM Whacks 1,100 Dealers
NEW YORK (CNNMoney.com) -- General Motors notified 1,100 of its 6,000 dealerships Friday that it is terminating their contracts with the struggling automaker, the first step in cutting up to 40% of its retail network.
GM spokeswoman Susan Garontakos said that the dealers receiving notice Friday are being told that their contracts will not be renewed in October 2010. Many of them are expected to close shop this year.
The company is likely to cut another 900 and eventually get its network down to between 3,600 and 4,000 dealers by next year, GM vice president Mark LaNeve said. (continued) (To view links or images in this forum your post count must be 5 or greater. You currently have 0 posts.)An extremely bloody two days for 2/3 of the Detroit Three.
No question, these companies were so franchise-happy that they vastly oversaturated the available markets with dealerships. Some of the numbers coming out of these deals were particularly shocking:
For Chrysler, approximately 50% of dealers account for 90% of national sales volume?
For GM one of the cutoffs I heard mentioned was dealers that sell fewer than 35 cars per year. Per year?
The sales network they're both shooting for, here, is in line with what Toyota's been doing for 20 years. Hopefully it's not too little, too late...
NEW YORK (CNNMoney.com) -- Chrysler LLC will close down 789 dealerships, or roughly 25% of the current number, according to a plan filed in bankruptcy court Thursday.
"With regret, this letter is to inform you that on May 14th, 2009, we are filing a motion in bankruptcy court rejecting the Sales and Service Agreement(s) between Chrysler Motors LLC and the dealership listed above," Chrysler said in letters sent to the dealereships. "Upon approval from the court, your agreement will be rejected on or about June 9, 2009."
The letters began arriving Thursday morning.
Chrysler had a total of 3,181 authorized dealers in operation at the time of its April 30 bankruptcy court filing, according to court filings. Just over half of that number accounted for more than 90% of Chrysler sales, according to the filing.
The dealers being shut down represent 14% of Chrysler's total sales, the carmaker said. (continued) (To view links or images in this forum your post count must be 5 or greater. You currently have 0 posts.)
GM Whacks 1,100 Dealers
NEW YORK (CNNMoney.com) -- General Motors notified 1,100 of its 6,000 dealerships Friday that it is terminating their contracts with the struggling automaker, the first step in cutting up to 40% of its retail network.
GM spokeswoman Susan Garontakos said that the dealers receiving notice Friday are being told that their contracts will not be renewed in October 2010. Many of them are expected to close shop this year.
The company is likely to cut another 900 and eventually get its network down to between 3,600 and 4,000 dealers by next year, GM vice president Mark LaNeve said. (continued) (To view links or images in this forum your post count must be 5 or greater. You currently have 0 posts.)An extremely bloody two days for 2/3 of the Detroit Three.
No question, these companies were so franchise-happy that they vastly oversaturated the available markets with dealerships. Some of the numbers coming out of these deals were particularly shocking:
For Chrysler, approximately 50% of dealers account for 90% of national sales volume?
For GM one of the cutoffs I heard mentioned was dealers that sell fewer than 35 cars per year. Per year?
The sales network they're both shooting for, here, is in line with what Toyota's been doing for 20 years. Hopefully it's not too little, too late...