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Dude, where did all the dealerships go?

653 messages,  Last post on Nov 14, 2009 at 6:23 PM

You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires

What is this discussion about? Car Buying, Automotive News, Legislation


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#65 of 653
Re: a local one bites the dust [gagrice] by nortsr1
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????
#66 of 653
Re: a local one bites the dust [nortsr1] by gagrice
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?
#67 of 653
Re: a local one bites the dust [nortsr1] by nippononly
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.
#68 of 653
Story on NPR by larsb
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.
#71 of 653
What does Bill Gates know that we don't? by steve_ HOST
Dec 05, 2008 (10:09 am)
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Bill Gates raises AutoNation stake to 12.2% (South Florida Business Journal)
#72 of 653
over in ModBob's neck of the woods by steve_ HOST
Dec 05, 2008 (11:55 am)
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Rider Auto files for bankruptcy (Centredaily.com)
 
"STATE COLLEGE — Declining sales and revenue have forced one local car dealership to file for Chapter 11 bankruptcy."
#73 of 653
Re: What does Bill Gates know that we don't? [steve_] by gagrice
Dec 05, 2008 (7:58 pm)
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Replying to: steve_ (Dec 05, 2008 10:09 am)

With over 300 dealerships Bill Gates will be able to get a great deal on any car he wants..
#74 of 653
Epitaph for a Dealer by lemko
Dec 08, 2008 (10:10 am)
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Apparently, another dealer is a casualty of the economy: Eckenhoff Cadillac-Buick-Pontiac-GMC in Jenkintown, PA apparently closed doors sometime within the last month. I went to the PetSmart for food for my cats and I look across the street and see his lot devoid of cars or any sign of life.
 
I feel really bad because Mr. Eckenhoff seemed like a really nice guy. I never bought a car there, but I often went there for parts for my 1988 Buick Park Avenue and 1989 Cadillac Brougham as his dealership was closest to me. My local chapter of the Cadillac-LaSalle Club had shows there in 2006 and 2007.

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