Chrysler and GM announced they were terminating more than 3,000 dealerships, many of them profitable small businesses employing thousands of people in communities all across the nation. Their logic didn’t make sense then, and it still doesn’t make sense today.
We are greatly disappointed at today’s unilateral decisions by General Motors and Chrysler to end negotiations with dealer representatives and to publicize indefensible so-called reinstatement plans.
COMMITTEE ON COMMERCE, SCIENCE,
AND TRANSPORTATION
WASHINGTON, DC 20510-6125
November 19, 2009
Mr. James Press
President
Chrysler LLC
1000 Chrysler Drive
Auburn Hills, MI 48326
Dear Mr. Press,
We are writing to request an update on the assurances you provided the Committee in June regarding issues related to Chrysler’s restructuring process and related dealership terminations. We are also very interested in receiving an update on [...]
For Immediate Release
11/20/09
Contact: Joe Brenckle – Republican Press Office 202-224-3991
Jena Longo – Democratic Deputy Communications Director 202.224.7824
Rockefeller and Hutchison Lead Call for Updates from Chrysler and GM on Dealership Restructuring Process
Bipartisan Letter Signed by 22 Members of Commerce Committee
WASHINGTON, D.C. –John D. (Jay) Rockefeller IV, Chairman of the U.S. Senate Committee on Commerce, Science, [...]
Sales Effectiveness: GM & Chrysler sales performance data is not a true measurement of a dealer’s performance, and therefore not appropriate as a criteria for termination. State average is inherently flawed as illustrated below.
The manufacturer’s evaluation of a dealer’s sales performance is based on the assignment of an area of responsibility (manufacturers typically provide dealers [...]
During all these months of the economic downturn and in particular the crisis within the American Automotive Industry I’ve remained uncharacteristically quiet.
“It’s time for GM to admit, finally, its $2 billion lie.”
The Editorial in Automotive News continued, “To claim otherwise is disingenuous and the worst kind of new math.”
CSI
GM & Chrysler used flawed databases, including CSI, to close franchises. Customer Satisfaction Scores (CSI) are very important, but are certainly not the most important factor in determining the financial viability and sustainability of any business. See the story of Bill Heard Chevrolet for example.
In addition, GM & Chrysler CSI scores have been manipulated [...]
The myth of “too many dealers” has gone on so long that people believe it’s true, without ever examining the facts. Most dealers would rather have less competition, it’s only natural. Simple math and an examination of the facts prove there are too few dealers, not too many.
Dealers across the country are taking to www.Youtube.com/rejecteddealers to tell their store, and now more than 18,000 people have visited, but more than 35,000 videos have been viewed.
Videos posted here are true stories of private Auto Dealers that had their dealerships shut down for no reason by the “Car Czars” (Auto Task Force). Hear their stories. [...]