Sylvester Posted May 16, 2009 Share #1 Posted May 16, 2009 I am confused about all the news of GM and Chrysler closing dealerships! I don't pretend to know anything about the workings of auto dealerships, but how does closing them make the auto makers more profitable? Basic economics tells me that having an outlet for your product is necessary. Seems like VOODOO economics to me. Link to comment Share on other sites More sharing options...
Scooter Bob Posted May 16, 2009 Share #2 Posted May 16, 2009 Maybe I'm wrong, but I never figured the Auto makers owned the dealerships anyway. I thought they gave out a license to sell their products?? Or else how could you have dealers selling more than 1 brand?? Just my Link to comment Share on other sites More sharing options...
barend Posted May 16, 2009 Share #3 Posted May 16, 2009 you forgot a part: the advertising budget was cut in half as well! ... and now I need to stop lest it turns political. Which is what this whole mess is anyway. Link to comment Share on other sites More sharing options...
Scooter Bob Posted May 16, 2009 Share #4 Posted May 16, 2009 ... and now I need to stop lest it turns political. Which is what this whole mess is anyway. You're right, enough said By the way, I really love the quote at the bottom of your post:thumbsup2: Link to comment Share on other sites More sharing options...
flb_78 Posted May 16, 2009 Share #5 Posted May 16, 2009 Doesn't make any sense, does it? The dealerships are not owned by the GM/Chysler. In fact, they receive a franchise fee from the dealers to use their name so they are actually losing revenue.... But then again, these auto makers are ran by the government now and government has never had to compete against anybody to "sell" their services. Just wait until they put extreme tariffs on "foreign" manufacturers to price them above the "domestic" ones, because it'll be good for the country. Link to comment Share on other sites More sharing options...
eazyduzzit Posted May 16, 2009 Share #6 Posted May 16, 2009 Seems like VOODOO economics to me. Along that same reasoning. The company I work for cut 4 of our people because our sales were down for a few months. Now sales are picking back up, but we don't have enough people to handle it. Phones are going unanswered, morale is bad because everyone is overworked and the boss is more of an ass than normal because he's worried about his job. It makes no sense to me to ruin a business just because of a few bad months. Link to comment Share on other sites More sharing options...
SilvrT Posted May 16, 2009 Share #7 Posted May 16, 2009 The way I see it is sales are way down and inventories are high. They cut profit margins to sell them, offer zero % APR financing, pay your gas for a year, and on and on just to move the product and cut their losses... but with all that, they still can't get out of the hole so what do ya do?... cut production...and in so doing, they close outlets because there ain't no product to sell. I don't profess to know a lot about how a dealership is run but I think it's a whole lot more complicated than a guy paying franchise fees...I think the GM or Chry corporations have a huge hand in the various dealerships...I'd guess they own the buildings and property in a lot of cases. The government takes over because GM (for example) has exhausted it's credit lines every where else and to completely shut down is a huge economic impact that reaches far beyond the average person's understanding. Our governments aren't gong to let that happen to us so they do what they have to to lessen the blow. Unfortunately, it's our taxes that support that but that's why we pays 'em. (just my inflated and CAN/US exchange $0.07) Link to comment Share on other sites More sharing options...
Eck Posted May 16, 2009 Share #8 Posted May 16, 2009 ... and now I need to stop lest it turns political. Which is what this whole mess is anyway. What he said....... Link to comment Share on other sites More sharing options...
royalstarjac Posted May 16, 2009 Share #9 Posted May 16, 2009 Well then pretty soon we won't be able to talk about anything, except maybe the weather with the gov't moving into every aspect of our lives. Link to comment Share on other sites More sharing options...
SilvrT Posted May 16, 2009 Share #10 Posted May 16, 2009 I don't think this thread will "go political" per se` ... I think we can comment about GM and Chry without getting into a heated political debate. We all know better. BTW, did you hear there's a new, simplified tax form coming out next year? Only ONE question.... HOW MUCH DID YOU MAKE? __________ SEND IT IN! :rotf: Link to comment Share on other sites More sharing options...
Eck Posted May 16, 2009 Share #11 Posted May 16, 2009 Before it does..........just a friendly reminder guys. http://www.venturerider.org/forum/showthread.php?t=31560&highlight=politics Link to comment Share on other sites More sharing options...
barend Posted May 16, 2009 Share #12 Posted May 16, 2009 Well then pretty soon we won't be able to talk about anything, except maybe the weather with the gov't moving into every aspect of our lives. two words: "global warming". won't be long we won't be able to talk about that anymore either:innocent:. Truth is (I think), people are too willing to sacrifice their rights and freedoms to others whom they believe will get them a better deal, so long as it doesn't interfere with their daily routine (life). i.e. personal responsibility and rugged individualism have been corrupted by labor unions (sorry guys) and government! So now we are in a situation where we cannot talk about car maker trouble without also having to talk about the role of government and labor unions. Now i am really going to shut up! Link to comment Share on other sites More sharing options...
slick97spirit Posted May 16, 2009 Share #13 Posted May 16, 2009 Well then pretty soon we won't be able to talk about anything, except maybe the weather with the gov't moving into every aspect of our lives. What about global warming? Can't talk about the weather either. Could become political. Link to comment Share on other sites More sharing options...
6pak Posted May 16, 2009 Share #14 Posted May 16, 2009 My brother used to work for a Dodge dealer here in Knoxville, he changed jobs 2 years ago and went to work selling cars for a Gmc, buick, pontiac store. The Dodge store that he was working for is one of the 4 in the area on the "going away list", Now he is waiting to see what happens to the place he works for now. With the knowledge that the pontiac brand will soon dissapear, and thats a 3rd of thier business, he's sweating. Hold on folks, this is gonna get bumpy... Link to comment Share on other sites More sharing options...
royalstarjac Posted May 16, 2009 Share #15 Posted May 16, 2009 Before it does..........just a friendly reminder guys. http://www.venturerider.org/forum/showthread.php?t=31560&highlight=politics Big Brother is watching! Link to comment Share on other sites More sharing options...
a1bummer Posted May 16, 2009 Share #16 Posted May 16, 2009 Well then pretty soon we won't be able to talk about anything, except maybe the weather with the gov't moving into every aspect of our lives. I second that! Link to comment Share on other sites More sharing options...
SilvrT Posted May 16, 2009 Share #17 Posted May 16, 2009 Well then pretty soon we won't be able to talk about anything, except maybe the weather with the gov't moving into every aspect of our lives. oh c'mon... the government has been controlling the weather for years (why do you think it's so screwed up)... you don't still believe in "Mother Nature" do ya? :rotf: Link to comment Share on other sites More sharing options...
Tom Posted May 16, 2009 Share #18 Posted May 16, 2009 It was on Yahoo News that by cutting the dealerships there would be less competition amongst the dealers therefore incresing profits....They never have run into me though,I am TIGHT,if I dont get a REAL good deal I dont buy anything..That is why I will not entertain buying a Harley..Overpriced and have been told by every dealer that they can sale them for what they ask,dont need to cut the price....I will never buy one,I bet there are a lot of others that are like me also,can maybe afford one but will not buy because of the non negotiable price..( Yes there are a few that will throw in an extra but I like a DEAL!!)! Link to comment Share on other sites More sharing options...
a1bummer Posted May 16, 2009 Share #19 Posted May 16, 2009 I don't make enough $$$ to go to any of those dealers anyway. I have to stick to the local classifieds and Craigslist. Anybody have a Renault LeCar they want to get rid of? I need something that gets better mpg than my F100. For the rainy days anyway. Link to comment Share on other sites More sharing options...
SilvrT Posted May 16, 2009 Share #20 Posted May 16, 2009 I don't make enough $$$ to go to any of those dealers anyway. I have to stick to the local classifieds and Craigslist. Anybody have a Renault LeCar they want to get rid of? I need something that gets better mpg than my F100. For the rainy days anyway. OK, I can't help myself here... you opened the door LOL ummmmm... I have a sherman tank that will get better gas mileage than a Ford F100 ... Link to comment Share on other sites More sharing options...
Freebird Posted May 16, 2009 Share #21 Posted May 16, 2009 Renault LeCar? I HOPE you are kidding. The very worse car I have ever owned was a Renault 18i Sport Wagon. It literally caught on fire 3 times. Link to comment Share on other sites More sharing options...
midnightventure Posted May 16, 2009 Share #22 Posted May 16, 2009 This is a question that I have been trying to figure out myself. Here in my home town we have already lost all three dealerships that we had. I think and I stress the think part, I don't know anything for sure, that the manufacturers basically have been oversupplying for several years now and have been cutting each others throats. About the time the unions were finally making enough concessions to help the situation the news media started pounding on the economy until they just absolutely killed most peoples confidence, which I believe is one of the biggest components of a strong economy. Right now there aren't any car companies making money but when they get the supply cut down enough prices will go up and the survivors will be profitable. I just hope we don't end up with just one American manufacturer. A lot of people think Ford is doing OK but they just had a lot of money borrowed before the financial crisis kicked in. Link to comment Share on other sites More sharing options...
Yammer Dan Posted May 16, 2009 Share #23 Posted May 16, 2009 Hey i got a Buick I would sell. Only 208,000 on it. Brakes making noise,air don't work, not a panel on it that doesn't have a dent or scratch. Jute Box makes noise gets 25-28 MPG. Stick key in it and go!! Wait a minute maybe its not for sale. Link to comment Share on other sites More sharing options...
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