Mississippi Chrysler Dealerships Closing

Wilson Dodge? Why them?

#147340 | Author: Ironghost | Date: May 14 2009

Wilson Dodge is poorly managed. Plus they have the other Chrysler dealership right next door so I doubt that it will make much difference in their operations. I do feel for those that will be losing their jobs though.

#147342 | Author: WMartin | Date: May 14 2009

GM is expected to announce today that 1,100 dealerships will close and that another 2,500 closings to be announced at a later date.

#147383 | Author: golden eagle | Date: May 15 2009

Gee, can’t wait to see what we’re left with after GM announces.

#147384 | Author: Ironghost | Date: May 15 2009

Guess all that gub’mint play money they got couldn’t have prevented this…

#147432 | Author: Jeff Lucas | Date: May 15 2009

Jeff, this kind of “restructuring” was written on the wall back when they auto industry got their bailout last year. They have too many cars (and too many dealerships) when no one wants or can afford their products.

#147437 | Author: Ronni_Mott | Date: May 15 2009

GM has sent closure notices today to 1,100 “under performing” dealerships, according to Bloomberg. The story says GM will probably file for bankruptcy by June 1.

#147441 | Author: Ronni_Mott | Date: May 15 2009

[quote]Jeff, this kind of “restructuring” was written on the wall back when they auto industry got their bailout last year. They have too many cars (and too many dealerships) when no one wants or can afford their products. [/quote]Yes, and now tax dollars have been throw into this failed business model instead of staying out of things. Have Ford’s sales gone up in the meantime?

#147442 | Author: Jeff Lucas | Date: May 15 2009

Ford had already gone through this restructuring a couple of years ago. They also don’t have the massive health care problem with the Union GM does.

#147443 | Author: Ironghost | Date: May 15 2009

From a May 2 Wall Street Journal story on April car sales: Every major auto maker reported dramatic declines from year-earlier levels. Toyota Motor Co., with a 42% slide, fell behind Ford Motor Co. in the monthly tally for the first time since early 2008, even as Ford’s sales fell 32%. GM sales dropped 33% and Chrysler registered a 48% decline. Honda Motor Co. saw its U.S. sales drop 25% and Nissan Motor Co. was off 38%.

#147444 | Author: Ronni_Mott | Date: May 15 2009

Someone please help me out here- aren’t auto dealerships privately owned? If so, how would an under-performing dealership be costing the manufacturer anything? It seems to me that if they don’t sell but one car a year, that is still one more than the manufacturer would have sold if the dealership was closed. What gives?

#147461 | Author: Rico | Date: May 16 2009

An under performing dealership isn’t selling the cars they’re buying from the manufacturer as fast as the manufacturer needs, if I’m thinking right. Deuce’s Nissan dealership owed $7mil on the vehicles he had on the lot, for example.

#147467 | Author: Ironghost | Date: May 16 2009

My understanding is that dealers don’t actually pay for their inventory until they sell it. Dealers “buy” from the manufacturers through lines of credit furnished through the manufacturer’s finance company, often with little to no interest for two or three weeks. The finance company pays the manufacturer when the car is delivered. The longer cars sit on the lot, the more interest dealers owe, and if the dealers aren’t selling enough, they’re also not paying the finance companies, limiting the amount of available credit and available cash for the manufacturers. It’s a closed loop: the manufacturers need steady sales to keep providing credit and keep their assembly lines moving. When no one’s buying, the whole things falls apart.

#147468 | Author: Ronni_Mott | Date: May 16 2009