JKVIPER
Enthusiast
I guess I just don't get it.
.
Chrysler and GM keep complaining that they have too many dealers. I just don't understand the argument. Maybe some-one can explain.
More dealers=more places people can shop for the manufacturers products. How is this a problem for the manufacturers?
If these dealers were not profitable they would go out of business, so it seems to me that most are profitable otherwise they would be gone. Since they buy/finance their inventory, what is the cost for each dealership to the manufacturer and how is the number of dealers an issue?
The way I see it, GM sells as many cars as Toyota so it is not a sales problem. They just loose a lot of money selling more cars than most other companies. They have a cost problem, not a dealer problem.
Dodge/Chrysler I think was left with a poor line-up after being spun-off by Mercedes. In my mind I think they have a product problem and not a dealer problem.
I'd like to get other people's take on this.
.
Chrysler and GM keep complaining that they have too many dealers. I just don't understand the argument. Maybe some-one can explain.
More dealers=more places people can shop for the manufacturers products. How is this a problem for the manufacturers?
If these dealers were not profitable they would go out of business, so it seems to me that most are profitable otherwise they would be gone. Since they buy/finance their inventory, what is the cost for each dealership to the manufacturer and how is the number of dealers an issue?
The way I see it, GM sells as many cars as Toyota so it is not a sales problem. They just loose a lot of money selling more cars than most other companies. They have a cost problem, not a dealer problem.
Dodge/Chrysler I think was left with a poor line-up after being spun-off by Mercedes. In my mind I think they have a product problem and not a dealer problem.
I'd like to get other people's take on this.