jpd80 Posted May 19, 2009 Share Posted May 19, 2009 Link Farley was particularly critical of the Chrysler plan, noting how it would affect millions of consumers with little warning."It seems very abrupt and unplanned," he said. "You don't orphan 4 million customers overnight without some fallout." Some of those customers, primarily those in rural areas, will migrate to Ford dealerships, he said. "It really depends on how GM and Chrysler handle these orphan owners," he said. "If they don't give them a lot of attention, it will result in consumers going to other brands." Into the arms of Ford, Mercury and Lincoln.... Quote Link to comment Share on other sites More sharing options...
rmc523 Posted May 19, 2009 Share Posted May 19, 2009 Link Into the arms of Ford, Mercury and Lincoln.... .....ideally, of course. I suspect most that did defect would automatically migrate that way rather than toward imports, though, since they had already bought American. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 19, 2009 Author Share Posted May 19, 2009 .....ideally, of course. I suspect most that did defect would automatically migrate that way rather than toward imports, though, since they had already bought American. Ford dealers are more likely to be in a rural areas vacated by Chrysler dealers. Toyota and Honda don't really do that many rural dealerships by comparison. Quote Link to comment Share on other sites More sharing options...
rmc523 Posted May 19, 2009 Share Posted May 19, 2009 Ford dealers are more likely to be in a rural areas vacated by Chrysler dealers.Toyota and Honda don't really do that many rural dealerships by comparison. That's true. I didn't think of that, plus Farley said Ford isn't looking to do widespread closures of dealers (at least on the scale GM/Chrysler are), which could theoretically further increase sales for similar reasons you stated........since there may not be a local GM/Chrysler dealer, but there is a local Ford dealer, it may cause the potential customer to go ahead and buy Ford. Quote Link to comment Share on other sites More sharing options...
timmm55 Posted May 19, 2009 Share Posted May 19, 2009 I remember my dad getting his 1968 LTD at a Ford dealership in Alden MN......an itty bitty town. The dealership had one car in the showroom! Quote Link to comment Share on other sites More sharing options...
Critic Posted May 19, 2009 Share Posted May 19, 2009 I remember my dad getting his 1968 LTD at a Ford dealership in Alden MN......an itty bitty town. The dealership had one car in the showroom! I purposely bought a '86 Chevy S-10, POS in a small town that had NO showroom, was the size of a converted gas station. It kinda baffles me as to why people think they have to have a deluxe showroom, for the few hours you browse and sign papers for a car. Service is where you want your dollars well spent on. The cheaper the building I'm buying at, the less the dealer has to have for the vehicle. Quote Link to comment Share on other sites More sharing options...
theoldwizard Posted May 19, 2009 Share Posted May 19, 2009 (edited) Interesting comments by Farley. In several "all employee" meetings he has repeatedly said it is one of Ford's key goals to reduce the number of dealers, the sooner the better. I guess he has a "kinder, gentler" plan. Edited May 19, 2009 by theoldwizard Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 19, 2009 Share Posted May 19, 2009 I expect it's consolidation in metros. GM & Chrysler axing rural franchises that are often dualed with Ford franchises plays to Ford.... Quote Link to comment Share on other sites More sharing options...
rmc523 Posted May 19, 2009 Share Posted May 19, 2009 Interesting comments by Farley. In several "all employee" meetings he has repeatedly said it is one of Ford's key goals to reduce the number of dealers, the sooner the better. I guess he has a "kinder, gentler" plan. I expect it's consolidation in metros. GM & Chrysler axing rural franchises that are often dualed with Ford franchises plays to Ford.... The company's director of North American sales, James D. Farley, said in an interview Monday that Ford had been pushing steadily to consolidate its dealers, rather than trying to end contracts or let them expire. Ford has reduced its dealer network by 700 since 2005, leaving it with 3,700 nationwide. Farley declined to specify Ford's targets for additional reductions but said they would be small compared with the cuts by GM and Chrysler. Agreed, RJ. The first bolded point supports your thought. Also, in the second bolded point, he did (or, technically, I guess didn't) say that there'd be additional dealer closures, just that it wouldn't be on the overly accelerated rate that GM and Chrysler were using. Quote Link to comment Share on other sites More sharing options...
twintornados Posted May 19, 2009 Share Posted May 19, 2009 The Ford dealership where I go to (Camden NY) has been through several owner changes. Was a "one store" dealership for years, then got bought up by a regional chain, but recently has returned to a single store dealership when the owner of the regional chains' son wanted nothing to do with the business so the father has sold off all his stores. In Camden, there was once a ChryCo dealership, and a Chevrolet (with Oldsmobile) dealership....both of those outlets have since closed, leaving only Fenton Ford for new cars in the community. Showroom is only large enough for 3 cars. I live in the "big city" (Rome NY) and while we have a Ford dealership there too, there is something not quite "tangible" about walking into Andys' place, seeing Andy Fenton himself, and when he sees you, has a big smile and shakes your hand, greeting you by your first name. I really want a Milan, but his store is Ford only, so I will likely be buying another Fusion when I am ready. Quote Link to comment Share on other sites More sharing options...
mackinaw Posted May 19, 2009 Share Posted May 19, 2009 I expect it's consolidation in metros. GM & Chrysler axing rural franchises that are often dualed with Ford franchises plays to Ford.... That's what Chrysler did in northern Michigan. One Jeep dealer up here, that also sold GM products and Audi, got the axe. Quote Link to comment Share on other sites More sharing options...
F250 Posted May 19, 2009 Share Posted May 19, 2009 I purposely bought a '86 Chevy S-10, POS in a small town that had NO showroom, was the size of a converted gas station. It kinda baffles me as to why people think they have to have a deluxe showroom, for the few hours you browse and sign papers for a car. Service is where you want your dollars well spent on. The cheaper the building I'm buying at, the less the dealer has to have for the vehicle. If the dealer is in a big market and is moving 300 or more units per month then they cannot operate from a small facility. But I bet those dealerships that built shopping mall size showrooms just before the market collapse are wondering how they will pay for them. Unfortunately the manufacturers will keep and assist the mega dealers and the rural mom and pop stores will be thrown to the wolves. Those customers will just have to drive to the city to buy a new car. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted May 19, 2009 Share Posted May 19, 2009 I expect it's consolidation in metros. That makes more sense...why have 5-10 dealerships in a 25 mile radius? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 19, 2009 Author Share Posted May 19, 2009 If the dealer is in a big market and is moving 300 or more units per month then they cannot operate from a small facility. But I bet those dealerships that built shopping mall size showrooms just before the market collapse are wondering how they will pay for them. Unfortunately the manufacturers will keep and assist the mega dealers and the rural mom and pop stores will be thrown to the wolves. Those customers will just have to drive to the city to buy a new car. I read that a lot of luxury brands were building Taj Mahal show rooms before the crunch, experts are now saying there's no way these dealerships can survive as they were barely sustainable with good sales levels. Quote Link to comment Share on other sites More sharing options...
jpd80 Posted May 19, 2009 Author Share Posted May 19, 2009 If the dealer is in a big market and is moving 300 or more units per month then they cannot operate from a small facility. But I bet those dealerships that built shopping mall size showrooms just before the market collapse are wondering how they will pay for them. Unfortunately the manufacturers will keep and assist the mega dealers and the rural mom and pop stores will be thrown to the wolves. Those customers will just have to drive to the city to buy a new car. I read that some dealers with the luxury brands were building Taj Mahal show rooms before the crunch, experts are now saying there's no way these dealerships can survive as they were barely sustainable with good sales levels. Quote Link to comment Share on other sites More sharing options...
packardbob Posted May 19, 2009 Share Posted May 19, 2009 This is exactly what has happened here, GM used to sell Chevy, BOP and Caddy, they moved out in the early 1990's, and Chrysler last pulled out in 2005. The only dealer in this town of about 9000 is Ford Lincoln Mercury, most people here now buy Ford. Even the Ford dealership that had all their new cars stolen and sent to Utah a few months ago was saved and it's only an hour away in a town not much bigger than this one. They just lost their Chrysler dealership so I think Ford has the potential to pick up some sales. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 19, 2009 Share Posted May 19, 2009 Interesting comments by Farley. In several "all employee" meetings he has repeatedly said it is one of Ford's key goals to reduce the number of dealers, the sooner the better. I guess he has a "kinder, gentler" plan. attrition Wiz, survival of the fittest, the dealers going POOF are those with large overheads like land leases, building mortgages and large flooring..... Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 19, 2009 Share Posted May 19, 2009 I read that some dealers with the luxury brands were building Taj Mahal show rooms before the crunch,experts are now saying there's no way these dealerships can survive as they were barely sustainable with good sales levels. a certain Taj Majal in newport beach is a classic...rumour has it with his flooring, the land lease and the bill on the mega million dollar property amounts to a check of $660,000 a MONTH before a single sale or service $ etc is made....egos are an interesting thing, being opposite Fletcher Jones Mercedes didn't help....if true its a shame, because the owner I have heard is one of the true good guys in the business... Quote Link to comment Share on other sites More sharing options...
Sixt9coug Posted May 19, 2009 Share Posted May 19, 2009 a certain Taj Majal in newport beach is a classic...rumour has it with his flooring, the land lease and the bill on the mega million dollar property amounts to a check of $660,000 a MONTH before a single sale or service $ etc is made....egos are an interesting thing, being opposite Fletcher Jones Mercedes didn't help....if true its a shame, because the owner I have heard is one of the true good guys in the business... Fletcher Jones Mercedes is one of our accounts in the business. A great body shop in there that is probably the flagship for our waterborne paint line with regards to quality and production. truely a well oiled machine. Quote Link to comment Share on other sites More sharing options...
Deanh Posted May 19, 2009 Share Posted May 19, 2009 Fletcher Jones Mercedes is one of our accounts in the business. A great body shop in there that is probably the flagship for our waterborne paint line with regards to quality and production. truely a well oiled machine. absolutely...pretty impressive to say the least, and well run...but he purchased was YEARS ago...feel sorry for the guy next door in the Lexus store attempting One-up-man-ship to "Keep up with the Jones's" ( play on the Jones intentional....LOL! ) Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted May 20, 2009 Share Posted May 20, 2009 the land lease and the bill on the mega million dollar property amounts to a check of $660,000 a MONTH before a single sale or service $ etc is made.... Wow. That's a lot of doc fees. Quote Link to comment Share on other sites More sharing options...
630land Posted May 20, 2009 Share Posted May 20, 2009 Mopar is closing their only CDJ store on Maui island in Hawaii. Now, someone will have to fly to Oahu, and then have car shipped on a boat. Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted May 20, 2009 Share Posted May 20, 2009 (edited) Mopar is closing their only CDJ store on Maui island in Hawaii. Now, someone will have to fly to Oahu, and then have car shipped on a boat. You'd have to be a dedicated Mopar fan to do that. I seriously doubt that anyone will be doing that. I seriously doubt Chrysler is too concerned about the limited sales in Hawaii though... Edited May 20, 2009 by fordmantpw Quote Link to comment Share on other sites More sharing options...
blksn8k2 Posted May 20, 2009 Share Posted May 20, 2009 The only dealership in my hometown in PA is CDJ. The population is less than 400 people. But they did not get cut. They are the only CDJ dealer in an approximate thirty square mile area plus they sell all three brands. On the other hand, there were at least four large dealerships here in the Akron/Canton, OH area that got the axe. So just because a dealer is in a rural area don't assume they were not performing. Quote Link to comment Share on other sites More sharing options...
exploder48 Posted May 20, 2009 Share Posted May 20, 2009 I read yesterday that over half of the dealers Chrysler is cutting sold less than 100 cars per YEAR. While I appreciate the "dealer in every town" ideas of the 40's 50's and 60's, it would seem impossible for a dealer selling less than ten cars per month to stay profitable in this day and age. WhileI am not a fan of what's happening, it seems that the business has changed substantially from the "old days" and that these closings are sharp doses of reality. Quote Link to comment Share on other sites More sharing options...
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