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Dealership lists don’t tell the whole story

by David Zatz on

While many dealerships are losing their franchise, in some cases, the owner is finding that one or more franchises are being lost but another is being retained. For some of the dealerships on the “cut list,” therefore, it appears that Chrysler may be allowing the owner to centralize various franchises in a single outlet. As an example, Ronald Jelling is losing Westwood Chrysler Jeep but keeping Chrysler of Paramus; and he may be offered a Dodge franchise and take over the stock and employees of a Dodge dealership down the road which is on the “close” list.

It does also appear that some areas will no longer be served. However, indications are that Chrysler did use dealership satisfaction and quality data in making some decisions, along with sales. 

The motivation behind some closures may be avoiding lawsuits in the future as brands are pared or altered; if Chrysler is, for example, restricted to luxury cars, or Dodge becomes a truck brand, or Jeep goes into a tighter niche, dealerships selling a single brand could fight to get more product. If Chrysler closes many of the single-brand dealerships, this problem can be avoided and the company will have more flexibility to restrict or drop brands. 

List of Chrysler dealerships losing their franchise (PDF)

List of Chrysler dealerships keeping their franchise (PDF)

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