Any dealer dumb enough to do what Chrysler is asking deserves to go bankrupt tomorrow. Please consider Chrysler urges dealers to buy more cars.
With Chrysler LLC’s U.S. sales down 30 percent last year, an economy mired in recession and the automaker living on government loans, the last thing you’d expect a dealer to do is order more cars and trucks.Press's viability plan is nothing but a giant ponzi scheme to get dealers to buy more cars than they need. Bear in mind Chrysler will be offering special terms on this offer thanks to Congressional stupidity in granting Chrysler billions in loans. Good Lord, more and more it seems like I was right when I suggested Fed Destined To Become World's Largest Auto Dealership.
But that’s exactly what Michael Andretta, owner of a Chrysler-Jeep-Dodge dealership in central Pennsylvania, intends to do after being inspired by Vice Chairman Jim Press’ presentation at an auto dealers convention in New Orleans.
“I’m going to go back and I’m going to order cars that I don’t need,” Andretta said today after Press and other Chrysler managers met with dealers at the National Automobile Dealers Association convention.
Chrysler executives asked the dealers each to order a wholesale allocation set by the company that totals 78,000 vehicles for February, and Andretta and other dealers said they have no problem doing it. The company has a total 3,300 dealers nationwide.
“A feeling we took away from this meeting is that we’re all in this together,” Andretta said. “And that we’re going to survive together, that we’re doing the right things.”
Press wouldn’t reveal what concessions he will ask dealers to make other than ordering more cars. The concessions are part of the company’s effort to meet a plan filed in Washington to get $4 billion in government loans with another $3 billion under consideration.
He said dealers understand the need for everyone to “put some skin in the game,” to help Chrysler to survive.
“They also realize they can help save us all some money that will help preserve the future and make us more successful,” he said.
Press and Landry plan to take their presentation this week in eight cities across the country starting Monday in New Jersey, explaining Chrysler’s viability plan and talking to dealers.
Someone send me an email when Michael Andretta, owner of a Chrysler-Jeep-Dodge dealership in central Pennsylvania, declares bankruptcy. Buying cars you do not need is a sure fire way for a dealer to get there.
Thanks to "Kevin" for suggesting the title of this post, along with the link.
Mike "Mish" Shedlock
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