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Chrysler's Methodology For Closing Dealerships
Chrysler Restructuring Website ^ | 06/04/2009 | BuckeyeTexan

Posted on 06/04/2009 4:57:32 PM PDT by BuckeyeTexan

It is patently false to claim that Chrysler has not made public the criteria that it used to determine which dealerships it would close. In a May 14th Motion, Chrysler attorneys outlined the criteria that were factored into those decisions. The criteria were initially defined in Project Genesis, which was an analytical and statistical data model developed by Chrysler in 2008 to improve its viability going forward. The following is taken from page 17 and 18 of that motion.

The Debtors' Extensive Qualitative Assessment of Each Dealership

37. Project Genesis and the selection of dealerships to be included in the relief sought in this Motion involved the evaluation of each dealership. In particular, the Debtors reviewed and analyzed numerous performance and planning factors for each dealership, including, among other things:


(a) the dealer's —
    (i) brand affiliations;
    (ii) raw sales volume;
    (iii) sales performance relative to its Minimum Sales Responsibility;
    (iv) location;
    (v) type of market;
    (vi) facilities;
    (vii) customer service;
    (viii) history of experience; and
    (ix) market share;
(b) the planning potential for the dealership; and
(c) other factors.

38. In addition, the Debtors are able to draw on external metrics including, among other things:

(a) new vehicle registration information for the Debtors' and other manufacturers' comparable products, indicating the location of new vehicle registrations within the market and the location of registrations of
new motor vehicles sold by each dealer;
(b) demographic data including —
    (i) current population and household density;
    (ii) anticipated shift of population and household density; and
    (iii) average household income;
(c) the average distance to the nearest dealer by manufacturer for each locality; and
(d) competing manufacturers' market share within the locality.

39. Using these analytical methods, the Debtors can create comprehensive statistical assessments of each dealer and make reasoned judgments regarding the optimal configuration for each market in the Domestic Dealer Network and the best means of implementing the goals of Project Genesis.

According to information in the May 14th motion, the primary objective of Project Genesis was to revamp and refine the Chrysler Dealership Network such that the end result would be to have “the best dealers, in the best locations, with the best facilities.” Who can say what qualifies a dealer, location, or facility as being among “the best?” Obviously Chrysler gets to make that decision. So one must assume that Chrysler has a set of algorithms, formulas, and methodologies that it applies to the Project Genesis criteria to identify what it considers “best.” Those formulas likely place higher weight (priority) on one criterion, such as “brand affiliations,” than on another criterion, such as “history of experience.” Chrysler has not publicly released the methodologies used to analyze the Project Genesis criteria and they are not likely to do so because that information could logically be considered proprietary in nature.

I think it’s far too early to make definitive accusations that Republican dealerships were targeted for closure. It may very well turn out to be true, but we don’t yet have enough information about the methodologies that were applied as a whole in Project Genesis. Keep researching. Keep digging.


TOPICS: Business/Economy; Government; Politics
KEYWORDS: bankruptcy; chrysler; dealershipclosings; projectgenesis

1 posted on 06/04/2009 4:57:32 PM PDT by BuckeyeTexan
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To: BuckeyeTexan
The criteria were initially defined in Project Genesis...

Somebody at Chrysler is a trekkie...


2 posted on 06/04/2009 5:00:40 PM PDT by Petronski (In Germany they came first for the Communists, And I didn't speak up because I wasn't a Communist...)
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To: Petronski

No. The libs simply thought that if you gave it some kind of fancy name that it would not be scrutinized.

Project Close Productive Dealerships would have really tipped their hand.


3 posted on 06/04/2009 5:07:42 PM PDT by incredulous joe ("No road is too long with good company" - Turkish Proverb)
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To: BuckeyeTexan
Do you actually believe they did all that detail work?
4 posted on 06/04/2009 5:12:31 PM PDT by mad_as_he$$ (Nemo me impune lacessit (Two terms for politicians, one in office, one in jail.))
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To: Petronski

“Genesis Device”

The Big Lie: Nuke the Car Company and it will be reborn.

What a Lie. It will be the Death Knell for Crysler and GM.

Make the Green Car and no one will buy it.

The game is over. We all loose this one.

Before the next round of attacks we must expose the Enemy within.


5 posted on 06/04/2009 5:20:03 PM PDT by Texas Fossil (Once a Republic, Now a State, Still Texas)
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To: BuckeyeTexan
READ THIS!!!

Chrysler, GM Dealer Termination Data: How Much Politics Involved?

... A pattern seems to be emerging. Everywhere there is a Landers-McLarty dealership, Chrysler has rejected the competition. ...

Having reviewed the pattern of assumption and rejection of dealers throughout their region, I have detected a pattern: In every market where there is a dealership connected with former Penske Automotive executive Steve Landers, or his new automotive partnership with “Mac” McLarty (former Chief of Staff for President Clinton) and Robert L. Johnson (majority owner of the Charlotte Bobcats), the competitors are rejected.

6 posted on 06/04/2009 6:06:25 PM PDT by MrDem (Monthly Special: Will write OPUS's for Whiners and Crybabies for no charge.)
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