Closing auto dealers: Dumb move

[pauldun170]

Why was it a dumb move?

Should the automakers not take advantage of government involvement, sidestep all the legal BS associated with closing a dealership and have control over its distribution network?

Or should they keep dealerships open just keep sales jobs?

I don't know, I thought the point was to sell cars, not create sales jobs.

The report found that Chrysler, which made decisions on a case-by-case basis, followed the criteria for targeting dealers for termination. GM was inconsistent and retained more than 1,300 dealers that would have been shut based on sales, consumer satisfaction and profitability, according to the report.

[Homeslice]

Originally Posted by pauldun170

Why was it a dumb move?

Should the automakers not take advantage of government involvement, sidestep all the legal BS associated with closing a dealership and have control over its distribution network?.

How did selling some dealers allow them to "have control" (your words) over the remaining ones?

Originally Posted by pauldun170

Or should they keep dealerships open just keep sales jobs?

I don't know, I thought the point was to sell cars, not create sales jobs.

How did what they do help them sell more cars?

[pauldun170]

Originally Posted by Homeslice

How did selling some dealers allow them to "have control" (your words) over the remaining ones?


How did what they do help them sell more cars?

American automakers have had a problem with too many franchises.
Wasn't this all covered when auto TARP came along?
Does everyone have memory loss as to why things were done the way they were?