car dealers closing their doors

[renovation]

how many new car deals are you exspecting to close there doors in the next month or two .
that are in your area where you live .
talk is Chrysler is to order 800 deals closed tomorrow. GM is soon to follow ordering deals closed. i not heard what dealer's in my area yet .but im sure tomorrow will a very black day for a lot of people working in these shops.

[VTGreg]

GM made an announcement a week or two ago with the exact number of dealerships that would be closing. I believe it was around 2000.

[cheapie]

2000???? wow

[mojo]

how do you know where i live? :shifty:

[VTGreg]

2000???? wow

Looks like the number is actually 2600.

http://online.wsj.com/article/SB124205080838706773.html


GM, Chrysler Dealers Await Fate
Auto Makers Prepare Cut Lists Amid Scramble to Complete Overhauls


By SHARON TERLEP and JEFF BENNETT

Thousands of General Motors Corp. and Chrysler LLC dealers in the U.S. may learn their fate in the next few days as both auto makers complete lists of dealerships they plan to eliminate.

GM dealers will be notified this week whether they will continue to receive new cars and trucks from the company, GM Chief Executive Officer Fritz Henderson said Monday during a teleconference with reporters. Mr. Henderson said he expects to "wind down" most of the targeted dealerships during the year.
More

Chrysler is expected to produce a list by May 14 of the dealers it would like to keep in its retail network, people familiar with the matter said.

The company has been reviewing the strengths and weaknesses of its nearly 3,200 dealers as part of its restructuring in bankruptcy court. It had originally hoped to have the last by the end of last week, but the process was complicated after the Treasury Department's auto task force began reviewing the company's plans, these people said.

Chrysler intends to keep about 2,400 of its dealers, and drop 800 or more, they said. In court filings, Chrysler said 50% of its dealers account for about 90% of its vehicle sales.

Chrysler is expected to file a list of dealers it plans to close with U.S. bankruptcy court in Manhattan. The third-largest U.S. car maker filed for bankruptcy protection April 30 after failing to win concessions from creditors.

GM must institute a variety of cost reductions, including culling its dealers and cutting debt, by a June 1 U.S. government deadline or face bankruptcy.

GM plans to close 2,600 of its 6,246 U.S. dealers.

American car makers have been handicapped by their large dealer networks, which have fostered price battles among those serving the same market. Foreign makers such as Toyota Motor Corp. have more closely controlled the growth of their U.S. networks, giving dealers larger and thus potentially more profitable territories and ridding themselves of weaker locations.

GM will begin notifying 2,600 dealers this week whether they will close, like this Saturn lot in Colma, Calif.

During the conference call, Mr. Henderson said GM still could avoid bankruptcy protection. "We need to move, and we need to move fast," the CEO said. "We think there is still an opportunity for this to be done out of court."

Mr. Henderson indicated some progress on GM's plan to trim brands. He said the company is negotiating with two bidders for its Hummer line and continues talks to shed Saab and Saturn.

Negotiations also continue with the United Auto Workers union to cut in half GM's cash obligation to a $20 billion retiree health-care trust in exchange for 38% of GM's equity, he said. The two sides also are in talks over which U.S. factories will close.

Mr. Henderson said GM's funding needs in Europe, where losses are mounting, are "urgent." He said the company would consider retaining a minority stake in Opel, its Germany-based unit, after selling the operation. Fiat SpA of Italy is interested in Opel.

He said GM has no plans to alter its debt-for-stock exchange offer despite broad dissatisfaction among bondholders. The exchange will start only if 90% of bondholders agree to the terms.

[gwilks98]

THAT'LL boost consumer confidence. The government screwed the pooch on this one. They should have bailed out the bottom instead of the top.

[mojo]

$15 more per paycheck makes me want to buy a car

[johnnymk]

$15 more per paycheck makes me want to buy a car

how about a radio controlled unit?

[DarkFury]

how about a radio controlled unit?
Hotwheels collector edition maybe? :shrug:

Most good RC cars will cost more than $15 :heh:

[Airencracken]

THAT'LL boost consumer confidence. The government screwed the pooch on this one. They should have bailed out the bottom instead of the top.


No, no, no. You've got it all wrong! Trickle down! The rich guys once they get a ****ton of cash, they'll dole some of it out in higher wages.

Yeah, right. More like Trickle on. As in I feel like I'm being pissed on.

Supply Side economics are for the delusional.

[mechmike0034]

Here's the list (http://media.tbo.com/tbo/pdfs/051409chrysler.pdf) of Chrysler dealerships...

[VTGreg]

THAT'LL boost consumer confidence. The government screwed the pooch on this one. They should have bailed out the bottom instead of the top.

It's the right thing to do. We have a glut of car dealerships due to overconsumption that now need to be pulled back. You can either run all of your dealerships at 50% capacity or you can run 50% of your dealerships at full capacity.

It seems a bit like ruling with an iron fist but I do believe that the Obama administration has gotten the auto bailout right. They forced some serious changes in the cost structure and seem that they will have these companies coming out of this in the right direction.

[DarkFury]

Here's the list (http://media.tbo.com/tbo/pdfs/051409chrysler.pdf) of Chrysler dealerships...

WELL DAYUUUM!!!! :angry:

The Dodge Dealer I go to service my truck is closing...

GENE BELTZ' SHADELAND DODGE Sonofa... BEEEAYATCH!!!!

Now I gotta drive probably 15 to 20 miles further for the next available dealer for service. (which sucks when it comes to dropping the vehicle off for service and getting a "courtesy van" ride back home or to work...)