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Now that the downsized dealer network has been around for awhile...

Started by Ghoste, January 05, 2012, 08:16:02 AM

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Ghoste

Are there any stats available to prove how many more cars Chrysler and GM were able to move by reducing the number of dealers?

stripedelete

Right now, I'm not sure sales volume would give much of an answer.  First, what number do you compare it to, pre-recession, recession, bankruptcy? (also throw in the flood in Japan and for a couple of years more cars were crushed than sold)  Second, when it comes to GM, about half the dealers got their franchises back (and more).

When it comes to Chrysler, given the variables I mentioned above,  I think profit per vehicle might provide some insight as to wether or not the culling strategy worked (or is working).  If the CDJ dealer no longer has to fight it out with the CDJ dealer next door profit margins should rise.

I believe, in the end, and over time , market share will be used to answer the question. (or at least support the strategy)
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