Chrysler Threatens to Pull The Plug on Weak Dealers

Chrysler Group is warning some of its dealers that it may try to shut them down if they don't improve their sales within six months, the Wall Street Journal reported on its Web site on Tuesday, July 24.

Chrysler, which is being spun off by German parent DaimlerChrysler in a $7.4 billion deal with Cerberus Capital Management, has about 3,700 dealers, compared with General Motors Corp.'s 6,900 and Ford Motor Co.'s 4,200, the paper said.

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lewishamiltonpimp - 7/25/2007 11:52:06 AM

+2 Boost

The link goes to a site that requires registration.

I guess though from the tease, that the demand for blinged out 300s has declined,

Will_ - 7/25/2007 12:06:55 PM

+1 Boost

They need some new models. Hopefully they can get on this while simultaneously going through the motions of the DCX split.

Qwazywabbit - 7/25/2007 4:58:44 PM

+2 Boost

Cmon Mike, the Pacifica and the 300 are very nice too. I wouldnt call them garbage.

The point here is that as Chrysler enters its transition to private ownership, the last thing I think the company should do is scare the hell out of the dealers. They must foster loyalty to the brand, to give them something to be proud of, not blatent scare tactics that demoralize them.

Terrible way to do business when relationships mean EVERYTHING in that business.

bimmermike2 - 7/25/2007 9:31:26 PM

+3 Boost

I'll give you the Pacifica, it's a minivan, no comment; but the 300 is a Hemi powered zit. It's ugly, and cheap looking. I would not want to try a 2 lane 90 deg. turn in it doing more than 40mph. Hello curb, and Geico dude!

bimmermike2 - 7/25/2007 9:37:09 PM

+3 Boost

Sorry, yes business wise thats true, the scare the dealer thing your right but I still get nauseated when I hear Chrysler. I remember the K-Car ohh too well. No thanks!

CBR2200 - 7/26/2007 2:51:22 AM

+3 Boost

Blaming the dealers for their crappy cars, priceless. How bout make something worth buying first?

atomicbri - 7/26/2007 8:58:30 AM

+2 Boost

Agreed CBR2200! Why blame dealers for poor sales when it is obvious almost their entire lineup is crap! The 300 has a nice look and drive, but the interior looks as if it was made from RUbbermaids discarded plastics they use for their lids on their least expensive outdoor garbage cans. I test drove one and I do my plastic test... pushed my thumb nail on the dash...and it SCRATCHED! LOL! Whhoooops! It was so cheap!

EnnNorak - 7/26/2007 9:35:59 AM

0 Boost

I predict that those dealers will sue Chrysler and will effectively end up being bought out. I can't imagine that Chrysler can terminate for poor sales perfomance unless there is a strong relevant clause in the franchise agreement that would allow Chrysler to do that. I'd like to see direct fatory to consumer sales over the Internet at low prices. States with special legislation that puts the interests of franchisees ahead of consumer interests should be hit by appropriate federal legislation.

M53R - 7/26/2007 9:56:50 AM

+2 Boost

I agree with CBR2200

Anyways not all their products are garbage, I like the Dodge charger and the 300C.

mstangpny07 - 7/26/2007 11:18:54 AM

+2 Boost

agreed.
Hey wait, don't you have an E70? Have you been to x5world.com? I'm a member there (I have an E70 also)....people would love to see your E70 there....just an idea!

M53R - 7/27/2007 12:35:28 PM

+2 Boost

I ll check it out :)