closing dealers saves money??

I'm curious. How does closing a dealer save an auto manufacturer money? The dealers buy the cars and parts from the maufacturer. If the dealer can't sell them, the it's the dealer that's stuck, isn't he?
Even if a dealer only sells one care a month, the manufacture makes a profit on that car.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Not after looking after all the paperwork. There is a cost to the manufacturer just to maintain the files on a dealership. Then there is the "co-op advertizing" costs. And all the training costs (new product awareness and service training, etc - all covered by "corporate"
If they are only going to sell 100 cars a month in a geographic area, it costs less to have one dealer do it than 5.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On May 16, 4:34pm, snipped-for-privacy@snyder.on.ca wrote:

And, there is less chance of a customer having two (or three) dealerships compete against each other for the low-ball price.
A lot of these dropped dealerships got screwed big time over this. The irony is that Chrysler has been twisting their arms to buy some cars and have them sit on their lots. Now the actual people in charge won't buy their cars back.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Competition and advertising would be good for Chrysler, not bad for it.Chrysler doesn't care if their cars are sold at the dealers for $13,000 or $20,000, as long as they are sold.

The actual people in charge didn't strong arm the dealers. They got stuck with a horrible mess.
Of course, it still sucks for the closed dealers. I do feel sorry for them, particularly because minority dealers are particularly hard hit.
Jeff
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

Absolutely not true. If the cars are sold for $13,000 instead of $20,000 it depreciates the brand in the public eye. Deep discounting is to be avoided whenever possible.

surviving.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On May 17, 10:06pm, snipped-for-privacy@snyder.on.ca wrote:

No, I meant minority, as in not white. Minority dealers tend to sell fewer cars per year and be located inside cities, where they have less space.
http://www.npr.org/templates/story/story.php?storyId=104240851
Jeff

Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On May 17, 10:06pm, snipped-for-privacy@snyder.on.ca wrote:

My great-grandfather used to work in the mines underneath Scranton, PA. He was a fire boss.
Jeff
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

A lot of dealers have a floor plan, financed by the factory, or Borg Warner. That costs $$$$$$$$$$!
Steve R.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

The dealers also have to be supplied with training, contracts, factory representatives, books, brochures, etc. All of this costs money.
jeff
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
This is a multi-part message in MIME format. --------------000408010706010306010808 Content-Type: text/plain; charset=ISO-8859-1; format=flowed Content-Transfer-Encoding: 7bit
*Wake up people................. OVER PRODUCTION is the reason for the problems.... * Caesar Romano wrote:

--------------000408010706010306010808 Content-Type: text/html; charset=ISO-8859-1 Content-Transfer-Encoding: 7bit
<!DOCTYPE html PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"> <html> <head> <meta content="text/html;charset=ISO-8859-1" http-equiv="Content-Type"> </head> <body bgcolor="#ffffff" text="#000000"> <big><b>Wake up people.................<br>OVER PRODUCTION is the reason for the problems....<br> </b></big><br> Caesar Romano wrote: <blockquote cite="mid: snipped-for-privacy@4ax.com" type="cite"> <pre wrap="">I'm curious. How does closing a dealer save an auto manufacturer money? The dealers buy the cars and parts from the maufacturer. If the dealer can't sell them, the it's the dealer that's stuck, isn't he?
Even if a dealer only sells one care a month, the manufacture makes a profit on that car. </pre> </blockquote> </body> </html>
--------------000408010706010306010808--
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Related Threads

    Motorsforum.com is a website by car enthusiasts for car enthusiasts. It is not affiliated with any of the car or spare part manufacturers or car dealers discussed here. All logos and trade names are the property of their respective owners.