Chrysler Seeks 140 New Dealerships, after Burning 789
Chrysler, which recently ordered the closing of 789 car dealerships, is now looking to reopen 140. Chrysler’s sudden firing of 789 dealerships was more than a strategy to cut the store roster. The company used bankruptcy to shed dealerships it considered under-performing.
So Chrysler has begun appointing new dealers in some of the 140 open locations left behind after bankruptcy. The new dealerships anger some rejected Chrysler dealers, who lost their stores just two months ago.
The first winner is Al Piemonte Cadillac, which ironically was rejected by General Motors in its bankruptcy. If all goes according to plan, the store, which is winding down its Cadillac business, will be reborn by Sept. 1 as St. Charles Chrysler-Dodge-Jeep in suburban Chicago.
Said David Schoonmaker, general manager of the new Chrysler dealership and the old Cadillac-only store: “Our revenues should triple for service. We’ll have a lot more traffic and warranty claims.”
Al Piemonte Automotive Group opened the $8.5 million building in 2005. The store is less than a mile down Main Street in St. Charles, Ill., from the terminated Richard Chrysler-Dodge-Jeep, now known as Richard Auto Center. It sells used cars and performs service work.
The St. Charles dealership will remain part of Al Piemonte Automotive Group, which operates three other suburban Chicago dealerships. Al Piemonte is one of an estimated 700 Cadillac dealerships targeted by GM for closure by October 2010.
After Chrysler rejected the 789 dealerships in bankruptcy, the company had 140 open points nationwide. The closings left many towns with no Chrysler Group store.
Kathy Graham, a Chrysler spokeswoman, said the open points did not all result from the bankruptcy terminations. Some points opened after dealers voluntarily resigned their franchises because of economic conditions and other factors.
In May, when the dealer terminations were announced, President Jim Press (now deputy CEO) acknowledged that Chrysler’s ability to abrogate dealer contracts in bankruptcy helped the company reshape its dealer roster.
“That creates a number of open-point opportunities,” he said in an interview. Chrysler wants more stores where all three brands are under one roof and wants dealers serving larger market areas.
Graham said Chrysler is filling other points.
“The process is definitely moving. We’re starting to award some where it’s ready,” she said.
“Others will take time because we have more than one candidate. We’re taking our time to see who can offer what’s best for that marketplace.”
Chrysler’s plan to open a point near the rejected St. Charles dealership brought an angry reaction from Wade Walker, a rejected Vermont Jeep dealer and the founder of the Committee of Affected Chrysler Dealers. The group, now disbanded, formed in May to represent the rights of rejected dealers in U.S. Bankruptcy Court.
“They had no right to take it from the first dealer without good cause,” he says.
(Source: Automotive News)
How about putting an honest dealer in the new points. My advice…Ed Koehn…the guy in west michigan. he’s old school and available every single day at his stores
Chrysler is a joke! I had been a Mopar guy since the 80’s. They made a lot of poor decisions as the 90’s winded down. The most recent and probably Last Chrysler product I will buy came from Richard c/d/j in St. Charles, IL. ['09 Ram] They were great there! Best new vehicle experience I had ever had. They got screwed big time. Now that crook had a c/d/j dealership down the street…no thanks I’ll drive to Elburn for my service! Can’t wait to see what the Dodge & Jeep lines will look like once Fiat has F’ed it all up. Too bad Lee is too old to make it right [again]!
…By “crook” I mean AL whats-his-name…you know that greasy dago. Don’t beleve me google him and see all the complaints!