I have not looked into that but what you say makes no sense whatsoever.
First of all, only about 25% of the dealerships are closing.
I find it hard to believe that 75% are not profitable and being ‘given’ the profitable businesses owned by the other 25%.
Secondly - Chrysler, if they are smart (a debatable point certainly), should only be looking at a few factors when making these decisions - first and foremost new car sales performance and secondly location. Many dealerships do very well overall but their make specific new car sales don’t stack up very well. Which means they either represent multiple makes and/or they are fantastic at used car sales. As for location, many metro areas have multiple dealerships and centralizing their business can and should be a reasonable approach.
My first question is how does Chrysler save money or even make more money by closing this dealership?
Many of the ones closing are the most profitable. There was an article the other day listing some of them and pointing that fact out.
You forget. GM and Chrysler are NOT the ones making these decisions anymore. Now it’s Obama and his lackeys making the decisions. So as far as “smart” — yep, that was gone the moment the government stepped in. People expect a fascist and his lackeys to make “good” business decisions? Not a chance - they will make the decision THEY think is best with no real business acumen, or long-term plans for re-achieving solvency. (Honestly, I think they’re making this all up as they go — they worship Obama and think he can’t fail... And, their “grand utopia” is right around the corner.)
I wouldn’t be surprised if it all comes out after the fact that the CEOs and such at Chrysler and GM were given offers they “couldn’t refuse” (in other words: Ask for the stimulus money to help Obama get that power he needed, and then fork over the companies. “You’re all going to be out of business one way or another”. The GM and Chrysler execs seeing there was “no way out” accepted the stimulus money (think of it as severance pay), and have basically let the government take everything now. The only ones I’ve heard complaining now are those actually getting their PRIVATE COMPANIES taken out from under their feet...
And, what are they supposed to do — if GM & Chrysler are in the hands of the government what are they supposed to do? Sue the government? Ask for a bailout? I don’t see what any of them CAN do to stop this... They were sold out months ago.