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Old 05-24-2009, 11:26 AM   #29
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We lost three so far- GM, Pontiac and Jeep.

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Old 05-24-2009, 11:51 AM   #30
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I'm just wondering here, but what criteria did they use to fire these dealers? Dollar amounts, unit sales, add-ons, finance dollars? Throw a dart at a map?

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Old 05-24-2009, 12:04 PM   #31
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Originally Posted by purman View Post
.Yep, we lost one in every major town and city on the western slope of Colorado. (4) Durgango, Montrose, Delta, Criag, Grand Junction is ok
I think the Delta County dealership that was cancelled was Chrysler, not GM. that leaves the County with Ford/Mercury, Toyota, Buick/Chevy. Considering there are only 30,000 people in the county, that's a lot of dealers.

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Old 05-24-2009, 04:51 PM   #32
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What I see as happening: Dealerships only make 8-10% of their income directly from the sale of new vehicles...Most comes from service, parts and body work...Any dealship should continue to provide these services since ALL cars at some time will need at least minimal service...
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Old 05-24-2009, 04:57 PM   #33
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If parts and qualified mechanics start moving away, we are all screwed.
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Old 05-24-2009, 06:37 PM   #34
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I don't know that a former dealer will stock parts for brands that they no longer carry, if they are still open. They can't all become Kia dealers and stay in business.

Being a dealer for a brand brings warranty and post warranty business. The company—GM or Chrysler—is the dealer's best customer because of warranty work. That will no longer be available. Some people whose warranties have expired will continue to go to former dealers out of habit or loyalty. Some dealers, probably small town and rural ones, will survive on other brands, some will go to used cars, service and body work, and some will close down.

The large number of employees being laid off will in some case migrate to other dealers, mechanics should always find work, sales people will mostly stay in sales of some sort, office workers will suffer most I expect. Car salesman change jobs all the time. Mechanics move around a lot too.

Remaining dealers should be stronger, sales tax revenues will still flow, but perhaps to different places, or in places like where I live people will buy other brands and the same revenues will be there for the dealer (he'll sell a Toyota or a Ford instead of a Dodge). Less competition may boost prices.

There'll be a lot of dislocations, but it may not be as bad as it sounds at first.

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Old 05-24-2009, 07:40 PM   #35
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I may have not thought this thru but, here goes ---

I have read that chrysler dealers only averaged selling one car per day. I am sure that GM dealers sold more but, the US market has dropped from 17million to 10.5million. That is a 38% reduction in the overall market. I have no idea what the average sales is for a GM dealer but, it has to be off significantly.

Does anyone think the US market is coming back like before? I highly doubt it. If it recovers to 13-14million within 5 years, I will be surprised. Even then, the foreigners including China are going to fight for a share of the market.

Then again, the dealer closures should be somewhat related to the factory closings. I am sure that GM knows where the breakeven volume is on each model and factory.

Also, the new "cafe" number is bad news for poor people who can bearly afford a car now. I read somewhere that a F150 pickup or GM1500 pickup will cost approximately $30,000 when they get it to 29-30mpg.

I tried to play around with constructing a "cafe number" using just Honda & Toyota products. Does anyone have any idea how hard it is to get to 35.5mpg fleet cafe number? They will have to sell a lot of expensive hybrids & electrics and small cars.
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Old 05-24-2009, 07:45 PM   #36
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Daniels Chevrolet was given their letter here in Colorado Springs this week.
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Old 06-14-2009, 07:10 AM   #37
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