AutoExtremist.com comments on Chrysler’s dealer problem
Peter M. DeLorenzo writes: “One of the clear strategies of the new Cerberus-owned Chrysler is now emerging, and it revolves around the noble, even Quixotic notion of slashing Chrysler’s dealer roster, according to The Wall Street Journal. This isn’t exactly news, however, as the domestic automakers have been on a crusade to reduce their bloated dealer totals for at least five years now. The Cerberus-directed Chrysler is couching it in terms of going after “underperforming” dealers, but make no mistake - this is about cutting the number of Chrysler dealers, period, because Cerberus knows that failing to do so will negatively affect their fundamental ability to make money.”
Wolfgang went after the dealers during his last tour of duty, but he may be at it again. Chrysler needs to fix their distribution of their products. Peter is spot-on hs analysis of Chrysler’s recent dealer moves.
The problem that just won’t go away for Detroit. - autoextremist.com