- #62 of 654
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Re: a local one bites the dust [steve_]
by gagrice
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Dec 04, 2008 (9:13 pm)
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Replying to: steve_ (Dec 04, 2008 8:55 pm)
My question again. How will the bailout to the BIG 3 help the dealerships AT ALL? If people ain't buying, they will go broke. I heard the expected number for 2008 is 1000 dealerships. The Toyota dealer I bought my Sequoia from is under new owners.
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- #63 of 654
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Re: a local one bites the dust [gagrice]
by steve_ HOST
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Dec 04, 2008 (10:52 pm)
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Replying to: gagrice (Dec 04, 2008 9:13 pm)
Well, if the automakers get stabilized and credit eases, people will start buying cars again, and they can't buy them direct or from Wal-Mart. Some dealers will either survive or new ones will fill the voids.
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- #64 of 654
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Re: a local one bites the dust [steve_]
by gagrice
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Dec 05, 2008 (6:39 am)
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Replying to: steve_ (Dec 04, 2008 10:52 pm)
I don't think we will see the EZ credit from the past 15 years again. At least I hope not. That is what got US where we are today. 7% to 8% home and auto loans should be the standard for good paying borrowers. Don't expect a buying spree in new cars for several years.
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- #65 of 654
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Re: a local one bites the dust [gagrice]
by nortsr1
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Dec 05, 2008 (6:42 am)
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Replying to: gagrice (Dec 04, 2008 9:13 pm)
Well, if the dealerships "close" of their own fruition, it would probably mean that GM, Ford or Chrysler would have a lot less dealerships to "buy out"???? I have to assume when a dealership closes because of lack of sales or whatever, they would not be a "costly buyout" to one of the Big 3????
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- #66 of 654
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Re: a local one bites the dust [nortsr1]
by gagrice
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Dec 05, 2008 (7:53 am)
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Replying to: nortsr1 (Dec 05, 2008 6:42 am)
That may be true. It is also one less point of sale for GM or Ford or whoever. I understand getting rid of rebadges and poor selling brands. I do not understand cutting the number of dealers. If your town does not have a Chevy dealer but has a Toyota, who will get the business most of the time?
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- #67 of 654
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Re: a local one bites the dust [nortsr1]
by nippononly
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Dec 05, 2008 (7:55 am)
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Replying to: nortsr1 (Dec 05, 2008 6:42 am)
Yes, that's the other side of the whole equation, right? Sure dealerships are the front lines and you have to feel bad that they are suffering through no fault of their own, but since many if not most of the ones going out of business are domestic-branded dealerships, and since the domestics need such a drastic reduction in their dealer networks in the next few years (assuming the automakers make it at all), isn't it in some ways a small favor to the industry overall?
However, that doesn't change the fact that dealerships going out of business are another big contributor to unemployment, and to big outlays of benefit payments from the states.
Edit...gagrice: If your town does not have a Chevy dealer but has a Toyota, who will get the business most of the time?
I don't think there ARE any cases of that though. It's quite dramatically the other way around: a Chevy dealer (and a Ford dealer) in every small town, where you have to drive another 20-50 miles to find the nearest Toyota dealer.
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- #68 of 654
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Story on NPR
by larsb
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Dec 05, 2008 (8:36 am)
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Heard a story on NPR this week that GM still has over 6000 dealerships, and that about 4800 would be ideal for the brand.
Only a bad economy can force a dealer to close - GM cannot.
It's in GMs best interest for about 1200 more dealerships to fold.
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- #71 of 654
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What does Bill Gates know that we don't?
by steve_ HOST
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Dec 05, 2008 (10:09 am)
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Bill Gates raises AutoNation stake to 12.2% (South Florida Business Journal)
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