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Old 05-31-2009, 02:35 PM
Dan40 Dan40 is offline
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My question about Chrysler and GM dealer closings is not about their politics. Or if they make their money thru new car sales or thru used car sales and parts and service sales.
My question is HOW MUCH DO THE DEALERS COST THE COMPANY? Or how much will be saved by closing X% of the dealerships.
I can understand if the factory is floor planning the dealers new car inventory, it costs the factory a huge chunk of interest. And I imagine an awful lot of co-op advertising dollars are wasted by dealers running their incredibly dumb local adds. But those are controllable costs. No floor plan. Dealer wants a car in the showroom, he buys it. He wants local adds, go ahead, pay for them.
Otherwise, every outlet is a positive. Parts sales AND service HELPS the brand. Salable used cars ARE going to be sold, They are part of the competition.
Unless the factories are feeding money into dealerships some other way, WHY close them?
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