Chrysler Dealer Cuts | TheDetroitBureau.com
Detroit Bureau on Twitter

Posts Tagged ‘chrysler dealer cuts’

Dealer Closure Battle Heating Up on Capitol Hill

Congress threatening to order GM, Chrysler to reinstate thousands of retailers.

by on Jul.09, 2009

House Majority Leader Steny Hoyer is one of those calling for the reinstatement of thousands of dealers "fired" by GM and Chrysler.

House Majority Leader Steny Hoyer is one of those calling for the reinstatement of thousands of dealers "fired" by GM and Chrysler.

The Obama White House may soon be faced with a potentially no-win decision: whether to maintain its support of Chrysler and General Motors or give backing to those who contend the two automakers have unfairly issued death sentences to thousands of U.S. auto dealers.

Momentum is building on Capitol Hill, especially within the U.S. House of Representatives, to take action that would reinstate 789 Chrysler dealers who were summarily terminated as part of that maker’s recent bankruptcy.  A proposed bill gaining ground on the Hill would also force GM to cancel plans to trim thousands from its own retail body.

Increase Your News Share!

Increase Your News Share!

The larger maker, which could re-emerge from bankruptcy by week’s end, hopes to trim its dealer network to as little as 3,600 from 6,100 last year, but GM is giving retailers up to 16 months to wind down their operations.  So far, the maker says 98% of the dealers it is eliminating have signed contracts that will also provide financial assistance to ease the shut downs.

(more…)

“All 3,181 Dealers…Face Elimination,” Chrysler Marketing Chief Warns

Meanwhile, GM facing Saturn dealer lawsuit.

by on May.21, 2009

Chrysler needs to cut 789 dealers, argues marketing chief Steve Landry, or all 3,100 retailers "face elimination."

Chrysler needs to cut 789 dealers, argues marketing chief Steve Landry, or all 3,100 retailers "face elimination."

Chrysler’s marketing chief is issuing a stark warning to those who insist it didn’t need to fire 789 of its dealers as part of its court-protected bankruptcy reorganization. 

“The stark reality is all 3,181 dealers will face elimination,” Steven Landry, executive vice president of marketing, asserts in a new posting on the automaker’s blog, TheFirehouse.biz.

The troubled automaker, which filed for Chapter 11 bankruptcy protection, late last month, has taken some sharp criticism for its decision to eliminate nearly a quarter of its retail body, but in his blog, Landry insists the process of choosing which retailers to drop was “thorough, rigorous” and fair, and was based on a “data-driven metric” that looked at factors such as sales volumes, customer satisfaction, and whether the dealer handled all or just some of Chrysler’s three brands.

“Chrysler began the process to consolidate dealerships and locate all three brands under one roof more than 10 years ago,” Landry explains in his blog entry. “The Company made the decision not to continue to manufacture and market overlapping products. It is critical the majority of our dealers offer customers all three brands under one roof.”    (more…)