Ferrari Mailing List: Re: NFC: Dodge Dealer's outrageous story in newspaper

[Jeff Greenfield (coyote]

I was wondering the same thing.

I think it has to to with the cost of credit. The MFR is financing all  
the cars sitting on a dealer's lot. So, by reducing the number of  
dealers, they are reducing the number of cars sitting on lots unsold  
that the MFR has to finance.

Jeff

Sent from my iPhone

On May 21, 2009, at 7:29 AM, "LarryT" <l02turner [at] comcast.net> wrote:

> I read the ones being closed were not necessarily weak or failing -  
> they
> closed the stores that were not selling quantities of the major  
> franchises.
> Something like 61% of the dealrships sold a small % of the total  
> sales.  So
> those are being closed.
>
> Does anyoneelse wonder why closing sales outlets are a good thing?   
> Does it
> cost Chrysler money to wholesale a car to a dealership?
>
> Maybe it's different than I think - which is - a dealership *pays*  
> for the
> privilidge of buying cars at a reduced rate so they can turn around  
> and
> resell them to the public.
>
> How does closing the stores that are selling cars *save* money?   
> Does it
> cost Chrysler money to have those "lower performing" stores open?
>
> LarryT
>
> https://www.nrahq.org/nrabonus/accept-membership.asp
>
> Free 1 year NRA membership to anyone interested!
>
> ----- Original Message -----
> From: "Rick" <Forza355 [at] verizon.net>
> To: "Larry Turner" <l02turner [at] comcast.net>
> Cc: "The FerrariList" <ferrari [at] ferrarilist.com>
> Sent: Wednesday, May 20, 2009 7:18 PM
> Subject: Re: [Ferrari] NFC: Dodge Dealer's outrageous story in  
> newspaper
>
>
> > Inferring from the letter, it sounds like he had a successful  
> > dealership
> > even in the bad economy and had it ripped away and given to another
> > dealership. I thought only the weak & failing dealers were supposed  
> > to be
> > folded.
> >
> > Rick
> > ----- Original Message -----
> > From: Larry B
> > To: forza355 [at] verizon.net
> > Sent: Wednesday, May 20, 2009 7:09 PM
> > Subject: RE: [Ferrari] NFC: Dodge Dealer's outrageous story in  
> > newspaper
> >
> >
> > This is just a guess: the franchise agreement (or whatever the  
> > relevant
> > contract might be called between the dealer and Chrysler)  
> > presumably says
> > that Chrysler may, on something like 30 days' notice, freely  
> > terminate a
> > dealer's franchise.
> >
> > I'm not saying it's a humane way to treat a dealer, and as I said  
> > it's
> > just a guess.
> >
> > > From: Forza355 [at] verizon.net
> > > Date: Wed, 20 May 2009 19:01:57 -0400
> > > Subject: [Ferrari] NFC: Dodge Dealer's outrageous story in newspaper
> > > CC: ferrari [at] ferrarilist.com
> > > To: larrybard [at] hotmail.com
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