Hammer Time: Witch Croft?

Steven Lang
by Steven Lang

Cory02 writes:

Something interesting happened with my nearest former Chrysler/Dodge/Jeep dealer (Dave Croft Motors in Collinsville, Illinois): they appear to be selling new Chrysler products again. In the days approaching the “drop-dead” date for the culled dealers, I thought it was odd that they not only kept the large “Chrysler/Dodge/Jeep” signs on their building but also kept them lit at night (I would have personally taken them down out of spite). The owner went through the motions of crying to the media, proclaiming that he would stay in business as a used dealer, and then moved all the new cars to the very back of the lot and put them in neat rows to await pickup and delivery to another dealer after June ninth.

Yesterday, I noticed they were advertising in the newspaper again (as a used car dealer, of course). A closer look at their ad revealed that most of their advertised cars were Chrysler products with less than 100 miles. I happened to be in the neighborhood last night and noticed that they had put all of their new cars back on their lot and, by all appearances, were back to being a Chrysler dealer. I wonder if anyone else has seen something similar with other dealers? And what would happen to some poor unsuspecting soul that buys a new Chrysler from a former dealer gone rogue such as this? If they need warranty service are they as screwed as the lemon-law claimants?

Steve replies:

This isn’t surprising. The other neighboring dealers may have rejected the inventory and Chrysler had a choice between sending them to the auctions or letting the dealer sell them out.

The dealer may have also asked to be given a time period to show a healthy operation by whatever yardstick Chrysler is using at the moment. As they’re not new, these vehicles will NOT be covered by Chrysler’s ‘Lifetime Warranty’. The word on the street last week is that Chrysler has seriously overestimated their dealer’s desire to take on any more inventory from the disappeared.

Steven Lang
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  • Simonisback01 Simonisback01 on Jun 22, 2009

    Well, selling Chryslers at the prices they listed was basically a form of conning, so I wouldn't be surprised if they did after shutting down. GS650G: I visited Weathers Dodge twice in my lifetime, once a few years back and once during the wind-down. Both times everything they offered was overpriced, and overall the place was fairly trashy and dingy. It was also the only dealership I have been to where people stand outside and smoke cigs all day.

  • HD HD on Jun 22, 2009

    One of the Chrysler dealers in my area that got axed had his inventory on the lot for a couple of weeks before shutting down completely. I think the cars still might be there. Meanwhile the Hyundai wholesaler down the street is runing a scheme where he's giving away a truck load of Accents; I think 10 in all. Who is going to buy all these cars that are piling up?

  • Kjhkjlhkjhkljh kljhjkhjklhkjh A prelude is a bad idea. There is already Acura with all the weird sport trims. This will not make back it's R&D money.
  • Analoggrotto I don't see a red car here, how blazing stupid are you people?
  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
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