Would You Trade Places With A Chrysler Dealer?
It’s not a question that should leave many folks on the fence, but apparently there are at least a few Detroit-area journalists who might be willing to consider the career change. “Dealers optimistic about Chrysler’s future” proclaims the Detroit News headline from NADA’s annual convention. A more accurate headline (such as USAToday‘s “Chrysler dealers face new-model drought”) probably should have included the term “punch-drunk” to better explain this unexpectedly sunny outlook. One grizzled ChryCo dealer sums up the mood with aplomb:
We’re the toughest fighters. We’ve always been 3 or 4 (in the marketplace). We’ve never been spoon-fed. We have to fight for every piece of ground… There’s light at the end of the tunnel; I just don’t like the length of the tunnel.
Bizarrely (or, for those familiar with the dynamics of Detroit’s media, not), The Freep’s Mark Phelan dons his Pollyanna chapeau and goes for broke with the headline “Chrysler has lots of products to crow about.” Because the “game of survival” claptrap you hear from the people who actually have to sell Chryslers is just so much bellyaching. Phelan kicks off with a plea to “stop shoveling dirt onto Chrysler’s grave for a moment” (not bloody likely, mate), and then breaks into some prose that would be tough to describe as anything other than advertising copy.
SUVs became emblematic of Detroit’s dysfunction, but there’s still a market for them, and the new Grand Cherokee looks like a winner. Its elegant looks sheath a classy interior and the go-anywhere ability that make Jeep one of the auto industry’s strongest brands.
A brand-new seven-seat crossover SUV for Dodge — the brand’s first vehicle in the popular segment dominated by models like the Toyota Highlander and Chevrolet Traverse — is to follow the Grand Cherokee out of Chrysler’s plant off Jefferson Avenue in Detroit in the third or fourth quarter of this year.
At about the same time, dynamic new versions of the exciting Chrysler 300 and Dodge Charger sedans are to arrive in dealerships.
Get the picture? This is a lot of faith in Cerberus-era products for a guy who just 15 short months ago said:
Cerberus’ ownership of Chrysler is a strip-and-flip operation. Chrysler’s leaders spent much of the nine years they were part of DaimlerChrysler approving vehicles that didn’t stand a chance in the market.
And yet the last of the Cerberus-developed models, which first appeared in Chrysler’s laughed-out-of-Washington viability plan, are somehow worth breaking out the ad copy thesaurus for? One wonders what Phelan thinks of the widely reported sense of relief at the NADA conference that Chrysler would not be pushing extra inventory as they did last year.
In any case, product is only one of many major issues facing Chrysler’s dealer body. The ongoing arbitration aimed at bringing justice to Chrysler’s bankruptcy-era dealer cull is dragging on, while the critics of the cull like AutoNation CEO Mike Jackson blast ChryCo inpublications like Automotive News [sub]:
Chrysler went first, and I think they did a terrible job. Why they took out any rural small-town dealers, I don’t know. It’s a strength for them. Blows my mind.
But Chrysler must have a fairly different take on the importance of culled dealers, as it has resisted arbitration since the idea first came up in congress. Most recently, Chrysler reserved the right to challenge arbitration legislation in a letter to dealers, prompting Rep. Chris Van Hollen to lay into the Pentastar-crossed automaker:
Chrysler’s suggestion that they may now challenge this legislation is very troubling and will do nothing to help turn the struggling car maker around. It is my hope that Chrysler will allow the arbitration process to play itself out and abide by the outcome of these deliberations.As if to underline these tensions, Chrysler has announced to Automotive News [sub] that it has commissioned third-party audits of dealers’ performance in customer care, aftersale care, facility and management. The audit firm SGS Group will score dealers in these areas and provide undisclosed rewards to dealers achieving top scores. The rest? Given the tension over arbitration, look for these audits to be Chrysler’s bully stick to off the dealers it so desperately wants to be rid of.Meanwhile, with product and dealer relations in trouble, finance is forming the third leg of Chrysler’s stool of misery. With GMAC pushing for more lease marketing, dealers are reporting that this is not the road to salvation (go figure). One dealer explains to USA Today:
They drop cars off lease and they’re gone. We lose these people. That will hurt once the new product starts to flow again. They’re leaving us in droves.
But then the government has already backed GMAC and Chrysler in hopes of somehow rescuing both. If GMAC needs to push leases, it will be hard for Chrysler to say no. Chrysler’s dealers, meanwhile, are long used to not having the option either way.
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- Dusterdude @El scotto , I'm aware of the history, I have been in the "working world" for close to 40 years with many of them being in automotive. We have to look at situation in the "big picture". Did UAW make concessions in past ? - yes. Do they deserve an increase now ? -yes . Is their pay increase reasonable given their current compensation package ? Not at all ! By the way - are the automotive CEO's overpaid - definitely! (That is the case in many industries, and a separate topic). As the auto industry slowly but surely moves to EV's , the "big 3" will need to be producing top quality competitive vehicles or they will not survive.
- Art_Vandelay “We skipped it because we didn’t think anyone would want to steal these things”-Hyundai
- El scotto Huge lumbering SUV? Check. Unknown name soon to be made popular by Tiktok ilk? Check. Scads of these showing up in school drop-off lines? Check. The only real over/under is if these will have as much cachet as Land Rovers themselves? A bespoken item had to be new at one time. Bonus "accepted by the right kind of people" points if EBFlex or Tassos disapproves.
- El scotto No, "brothers and sisters" are the core strength of the union. So you'll take less money and less benefits because "my company really needs helped out"? The UAW already did that with two-tier employees and concessions on their last contract.The Big 3 have never, ever locked out the UAW. The Big 3 have agreed to every collective bargaining agreement since WWII. Neither side will change.
- El scotto Never mind that that F-1 is a bigger circus than EBFlex and Tassos shopping together for their new BDSM outfits and personal lubricants. Also, the F1 rumor mill churns more than EBFlex's mind choosing a new Sharpie to make his next "Free Candy" sign for his white Ram work van. GM will spend a year or two learning how things work in F1. By the third or fourth year GM will have a competitive "F-1 LS" engine. After they win a race or two Ferrari will protest to highest F-1 authorities. Something not mentioned: Will GM get tens of millions of dollars from F-1? Ferrari gets 30 million a year as a participation trophy.