By on March 5, 2010

Chrysler’s troubled relations with its dealers took another turn for the nasty this week, as culled dealers teamed up with lawmakers to criticize Chrysler’s decision to open new dealerships near the sites of several culled dealers. As with GM’s dealer struggles, this latest controversy centers around Colorado, where culled dealers are protesting Chrysler’s behavior in the Denver Post. Culled dealers have seen franchises in their former areas awarded to chains like AutoNation before congressionally-mandated arbitration had even given them the opportunity to contest their culling during last year’s bankruptcy proceedings. “This is not right,” said one dealer. “We specifically asked (Chrysler) not to redistribute the franchise before our arbitration.”

And the fight over dealer redistribution has spilled over into the national arena, as several Republican lawmakers have written to Chrysler, requesting that it stop reassigning franchises until after arbitration is completed. Automotive News [sub] reports that Reps. Pete Hoekstra of Michigan and Steven LaTourette of Ohio have written Chrysler to express their displeasure with the automaker’s shafting of their dealer constituents. In a letter to Chrysler, the representatives argue:

We are concerned about your treatment of the loyal Chrysler dealerships that have stood by your brand for decades. Dealerships deserve a good-faith effort entering the arbitration process

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13 Comments on “Dealers, Lawmakers Bash Chrysler For Opening New Stores Near Culled Dealerships...”


  • avatar
    mtymsi

    Two things;

    1) Chrysler can do it because of BK laws

    2) without knowing more details the Auto Nation example cited may be a case of Auto Nation being willing to build a new facility versus the former dealer who was not. As I recall, Auto Nation has very few Chryco dealerships among their holdings.

  • avatar
    funnyboi

    mtymsi,

    I live near the Autonation dealership that was awarded former Chrysler and Jeep franchises… the facility as of now isnt new and the dodge dealership that Autonation had at the site in question has also been reopened. The Jeep and Chrysler franchises used to be about two blocks north of the autonation dealership.

    • 0 avatar
      mtymsi

      This particular example then sounds more like consolidating all the brands under one roof which has been done nationwide. I’m thinking it’s pretty much a no brainer on Chryco’s part to select Auto Nation over a stand alone independent former dealer. I know in the metro Detroit area every Chrysler/Jeep store was combined with a Dodge store or vice versa.

  • avatar
    jimboy

    While I have some sympathy for the culled dealers if they were good ones, my own dealership experiences have led me to believe Chrysler didn’t cull enough of them. There are seven dealerships in our metro area, and of the 2 I have dealt with,one is a new dealership (2 years) and the other a 5 star dealer of many years. Both of these dealers have tried to screw me financially, overcharged, performed unnecessary repairs, and have done extremely sub par work, so much so that I had to take the vehicle to an independent repair shop to get the work done correctly. Therefore I would question whether these dealers were not culled for very good reasons, long term, family run or not. Certainly, my dealer experience has convinced me never to use them again. Chrysler really has to step on these people to make sure they are competent professionals, which mostly, they are not.

  • avatar
    funnyboi

    I am not surprised that the jeep and chrysler dealership two blocks north of the autonation dealership was culled if the service I have received at the Saturn dealership owned by the same people is any indication… I am now a toyota owner!!!

  • avatar
    moedaman

    I’m sure Chrysler couldn’t come out and say that the dealers they closed were just plain crap due to threats of lawsuits. But I bet most of those closed shops were.

  • avatar
    rocketrodeo

    Opening a new Chrysler dealership ANYWHERE seems to me to be an ultimate act of faith. What optimists.

  • avatar
    GS650G

    Anyone who has every gotten shafted on a trade, been screwed by the service department, argued for hours about overpriced floor mats and pinstripes that were unneeded or unwanted, or dealt with finance people who lie for a living will have a very hard time sympathizing with the culled dealers.

    And any company that does this doesn’t warrant our business and should be avoided. These operations need to go away.

    Companies should sell cars on line and do service through retail repair shops. There are plenty qualified to fix cars, sometimes without inflating the bill beyond what is covered under warranty. It’s time to move car sales into the 21st century.

    • 0 avatar
      mtymsi

      Two of the more notable problems with moving to an online sales model are the inability to appraise a trade online (you can estimate the value but the appraiser still has to physically see and a lot of times drive the trade in) and the inability to testdrive vehicles and see the color selection on the actual vehicle.

      All dealerships today have internet sales depts. but the buyer still has to go to the dealership for those above things. You can select the vehicle, negotiate the pricing and arrange the financing online but even if there is no trade in you still have to go somewhere to pick it up.

      Lastly, without dealerships where would the buyer go to pick up their new vehicle?

  • avatar
    Dynamic88

    Why the firm expected to be able to screw its dealers after taking a taxpayer bailout and not face stiff political opposition is difficult to explain.

    Actually what’s hard to understand is why Chrysler has to go through an arbitration process when a BK judge has already told them they could drop these scum-sucking dirt-bags, – er, dealers.

    The cull should have been much deeper/bigger. The mystery is why they are opening 100 new dealers.

  • avatar
    crush157

    So here in suburban Chicago, St. Charles, they culled the local Chrysler/Jeep/Dodge dealer (Richard Chrysler) then 2 months later gave the Chrysler dealership to what was a Cadillac dealer (Al Piemonte Cadillac) 1 block west. The caddy dealer wasn’t doing well either in our town.

  • avatar
    nrd515

    It seems like some of the culled dealerships, not any in my area were mostly “problem” dealers, or they had very poor facilities. I would, and have bought cars from tiny small town dealers with showrooms that held one or two cars, and from places with a couple dozen cars in the showrooms and hundreds out it in the lot, and I would take the small place hands down. The finance weasels in a couple of these places were so obnoxious, we threatened to walk out a couple of times (And I did once) if they weren’t replaced with someone else. Chrysler did cull one of these places that sold Jeeps, and I was happy to see it happen, as I had a couple of terrible buying experiences there over the years. Chevy culled their franchize too, and then Pontiac was put down. Now they lost their Hundai one too! All they have left is VW, GMC, and Volvo. Hopefully, 2010 will be their last year. They need to disappear. Chrysler gave the Jeep franchise to the local Dodge dealer, and they got Chrysler when they closed up the other really slimy dealership here locally.

    A friend of mine who recently died used to buy his cars from a very small Dodge dealership that used to be owned by a relative of his. One car showroom, and 3 service bays. I think six people total worked there. I bought one vehicle there and was very pleased, but they were just too far away to go to for regular service, let alone when there was an out of warranty issue. The next time I went to one of the local ones, where I have bought 3 previous vehicles. I’ve never had a problem with them, except for their service pricing, but that’s an industry wide problem, so I can’t hold that against them.


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