Wednesday, May 20, 2009

Closing of Car Dealerships.

My neighbor said to me this morning, "Well, it looks like we won't be buying Chrysler vehicles anymore." The neighbor has been buying a specific type of vehicle from Chrysler for years because it serves the needs of her business and her family. But apparently the closest Chrysler dealer, with a 5 star repair rating, and the next closest Chrysler dealer, 40 miles away, plus the closest GM dealer will be losing their franchise. We also have done business with the Chrysler dealer for about 23 years. They are good people with a quality Five Star service department. The local GM dealer actually just recently purchased two more dealerships that are now going to be closed. Their other place will still now be the "closest" for many people, if close means over 100 miles for some of the customers.
Apparently, the auto companies are in financial trouble because of bad business practices. And in the last several years, a number of auto dealerships have closed due to declining business and a bad bottom line. But what about the remaining places? If they are selling enough cars and doing enough repairs to pay their people and rent, why shouldn't they stay in business? I've been told that the small dealers have to buy their new cars from the company, so if the cars are paid for, what is it to the company just how many cars are sold? In a city, if a dealer closes, well, you might have to drive another 10 miles to get service, not such a big deal as it is to go 100 miles for rural people.
All I'm saying is how will closing enough dealerships, or I should say, revoking the franchises, of GM and Chrysler dealers so that customers, who now have to drive as far as 50 miles to get a car serviced, so that in the future they will have to drive 100 miles, well, how will that help these companies retain customers? Two minus two equals zero. People have a life and they don't want to spend a whole day just to go get a car serviced.

People around here are pretty adamant about "buying American" and "buying local" when it comes to cars. There are no "foreign" car dealers close by, even though many of these are made in America. So now what?

To make this church related: If a church's attendance has declined and that church's reaction is to have fewer services and fewer outreach programs and cut out the newsletter, well then, how does that solve "the problem" of declining attendance?


  1. If they had leadership that made sense they wouldn't be in this mess.

  2. Exactly. No... exactly!!!!!! We had three car dealerships in our small southeastern Minnesota town. Now we are down to one and its survival is questionable at best due to GM bankruptcy. I don't get it either. Still Rochester is ONLY thirty miles away

  3. My dad used to be a Chrysler dealer but gave up the franchise 5 years ago because they were trying to squeeze him out then. He was a small dealer in a small town. Chrysler would force him to buy tools and parts for cars that would never be seen in rural Minnesota, but he still had to be ready. Currently my dad sells used cars and is doing better now than he did with the franchise.

    Forcing Chrysler customers to drive farther is going to backfire in the end. They will just abandon their loyalties and buy a different brand. The same thing would happen in the church example.


And what do you think?