Go Back   DealershipForum.com > Regional Forums > Southwest Region > Automotive Discussions

Notices

Reply
 
Thread Tools Display Modes
Old 06-03-2008, 05:00 PM   #1
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default What happened to Urban Chrysler/Jeep/Dodge?

I just read that Urban Chrysler/Jeep/Dodge had closed its doors and filed for bankruptcy.

Here's a link to the news report: http://www.ocregister.com/articles/c...8-nissan-april

What happened?

It's been awhile since I've been in that market but I still remember when that store was built. I thought it was supposed to be in a high growth area?

When I was last in the area the Dealership was branded as Foothill Ranch CJD and I believe that it was still a Chrysler MID Dealership.

Was the store bought out and then resold?

Any ideas what is going to happen to the facility and franchise?
XDCX is offline   Reply With Quote
Old 06-04-2008, 07:37 AM   #2
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

MID? For those who don't know, what does it mean?
SHACOS is offline   Reply With Quote
Old 06-04-2008, 08:35 AM   #3
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default

Quote:
Originally Posted by SHACOS View Post
MID? For those who don't know, what does it mean?
Sorry about that.

MID used to stand for "Marketing Investment Dealership" - it was a program within Chrysler where General Managers could buy into a dealership and then use the store's earnings to buy-out the factory. Chrysler owned the dealership and maintained oversight until the store was bought out.

In the early 80s this program was available to all applicants that met Chrysler's requirements. In the late 80's the program was restricted to minority applicants - that's why many people assume that the "M" stands for minority.

The program still exists but Chrysler has changed the name to the Minority Retail Dealership Development program.

There were some great dealers that came out of that program - men and women that had a lot of talent and drive but didn't have the financial backing to go out and buy their own store.
XDCX is offline   Reply With Quote
Old 06-05-2008, 09:07 AM   #4
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

Thanks for the explanation. It sounds like a great problem. I'm not involved in the private organization part of the car industry too often.
SHACOS is offline   Reply With Quote
Old 06-05-2008, 04:10 PM   #5
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default

Quote:
Originally Posted by SHACOS View Post
Thanks for the explanation. It sounds like a great problem. I'm not involved in the private organization part of the car industry too often.
While the program is often criticized for its failures, they've had some great success stories.

Dorian Boyland started out as a MID Dealer with Gresham Dodge - now he owns the third largest black-owned dealer group in the nation with revenue in excess of $400 Million.
XDCX is offline   Reply With Quote
Old 06-05-2008, 04:36 PM   #6
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Unhappy The Chrysler website still shows Urban CJD as an Active Dealer

I was on the Chrysler.com website and thought I would see what they would list for dealers near Urban CJD and I was surprised to see that they were still listed as an active dealer.

That seems strange - Chrysler is typically super fast when it comes to removing access for terminated dealers.

I also thought it was interesting that the only new cars in inventory were all 2007 models. I'm sure the 2008s have already been sold and reassigned to other dealers. Sadly, I'm afraid that the flooring source is going to own the 2007s - they're too old to return to the factory.

Hopefully someone in the SoCal market will respond to this thread and provide some additional details.
XDCX is offline   Reply With Quote
Old 06-05-2008, 05:56 PM   #7
dealer3100
Senior Member
 
Join Date: Jan 2008
Posts: 118
Default

Currently running a Chry- Jeep store in SoCal. It was an MI store and the GM was successful enough to buy Chrysler out. I had a 2 managers working with me who had worked there and times where good around 2004 and 2005. They also had a huge Internet/ Fleet manager who was putting out about 100 new per month. I had heard that the VPA numbers were huge following the success they had the recent years and 2007 they just couldnt hit the VPA #'s to bring in the additional gross. In the past year they had brought in some GSM's and GM's that flooded the used car Inventory and also ordered too many cars. I think last summer they had 160 300's on the lot. Also noticed on April 29th they had 0 NVDR's out and on April 30th they had 53. Rumor is they NVDR'd them, probably as service loaners and took them to the auction. Also, the Pontiac- GMC- Buick store next door is now a garden center.
dealer3100 is offline   Reply With Quote
Old 06-06-2008, 06:55 AM   #8
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

Correct me if I'm wrong, but there is supposed to be a 90 day retention period on those service loaners. They could be risking huge chargebacks from Chrysler taking these vehicles straight to the auction.
SHACOS is offline   Reply With Quote
Old 06-06-2008, 08:45 AM   #9
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Smile Great Post - Thanks for the information

Quote:
Originally Posted by dealer3100 View Post
Currently running a Chry- Jeep store in SoCal. It was an MI store and the GM was successful enough to buy Chrysler out. I had a 2 managers working with me who had worked there and times where good around 2004 and 2005. They also had a huge Internet/ Fleet manager who was putting out about 100 new per month. I had heard that the VPA numbers were huge following the success they had the recent years and 2007 they just couldnt hit the VPA #'s to bring in the additional gross. In the past year they had brought in some GSM's and GM's that flooded the used car Inventory and also ordered too many cars. I think last summer they had 160 300's on the lot. Also noticed on April 29th they had 0 NVDR's out and on April 30th they had 53. Rumor is they NVDR'd them, probably as service loaners and took them to the auction. Also, the Pontiac- GMC- Buick store next door is now a garden center.
Excellent post - thanks for the information.

I remain convinced that VPA will go down in history as one of the most hated Factory to Dealer Incentives ever created. Many Dealers were punished for their success with VPA objectives that were impossible to hit - it created two-tier pricing in many markets.

Concerning the Fleet/Internet guy - was he the guy that used to work for Barwick CJD? I remember that they had a very successful Internet Department before the store closed.

Concerning the surge of last minute NVDRs - that could be ugly.

Final question - any idea what will happen to the facility? It would be hard to imagine that Chrysler would close the point. I wonder who owns the land/building?

Thanks again for a great post.
XDCX is offline   Reply With Quote
Old 06-06-2008, 08:55 AM   #10
dealer3100
Senior Member
 
Join Date: Jan 2008
Posts: 118
Default

Same fleet guy.

Probably not too worried about chargebacks since your out of business.

Also, Chrysler had come in and did an incentive audit. I heard it was ugly.

From what my source tells me is that Chrysler owns the building but not the land.
dealer3100 is offline   Reply With Quote
Old 06-06-2008, 09:07 AM   #11
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

Valid point on the chargebacks, but I'm surprised Chrysler wouldn't have grounds to come after the ex-Dealer Principal for that money. Not sure.
SHACOS is offline   Reply With Quote
Old 06-06-2008, 09:13 AM   #12
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default

Quote:
Originally Posted by SHACOS View Post
Valid point on the chargebacks, but I'm surprised Chrysler wouldn't have grounds to come after the ex-Dealer Principal for that money. Not sure.
Based on the Bankruptcy Filing it looks like it's going to be bad news for all the creditors - Chrysler included.

The newspaper reported: "In its Chapter 7 bankruptcy filing for liquidation in U.S. District Court in Santa Ana, Urban Chrysler listed assets of $1.3 million and liabilities of $5.4 million."

That's a $4.1 Million shortfall - not good news if you're a creditor.

Concerning a Personal Guarantee from the Dealer Principal, that's an interesting thought. I wonder if there are enough assets to make it worth chasing?
XDCX is offline   Reply With Quote
Old 06-06-2008, 09:22 AM   #13
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default

Quote:
Originally Posted by dealer3100 View Post
Same fleet guy.

Probably not too worried about chargebacks since your out of business.

Also, Chrysler had come in and did an incentive audit. I heard it was ugly.

From what my source tells me is that Chrysler owns the building but not the land.
I wonder what will happen to the point?

In light of Project Genesis you would think that Chrysler would be happy to close the point, but does that outlook change when the corporation owns the building?

I guess if they turned the old Pontiac/GMC dealership into a Garden Center that anything can happen.
XDCX is offline   Reply With Quote
Old 06-13-2008, 08:46 AM   #14
XDCX
Administrator
 
Join Date: Nov 2007
Posts: 14,855
Default

Quote:
Originally Posted by XDCX View Post
I wonder what will happen to the point?

In light of Project Genesis you would think that Chrysler would be happy to close the point, but does that outlook change when the corporation owns the building?

I guess if they turned the old Pontiac/GMC dealership into a Garden Center that anything can happen.
I spoke with a good friend that's still in the Los Angeles market and he thinks that the point is dead - it will never be re-opened.

He indicated that the dealership is in a dieing Auto Mall that's somewhat difficult to get to. The GMC dealership is already gone and the Nissan dealership is rumored to be relocating.

I remember at the beginning of the year there was an advertisement in Automotive News looking for $1 Million Blue Sky for a Chrysler Alpha Store in Los Angeles - I alway wondered if Urban CJD was the store that was for sale. I guess that I'll never know.
XDCX is offline   Reply With Quote
Old 06-13-2008, 08:49 AM   #15
SHACOS
Super Moderator
 
Join Date: Jan 2008
Posts: 838
Default

A dealership that is hard to get to? You should see our old Grapevine Dodge store in Dallas right next to DFW. It's on a frontage road and you can't see the dealership until your well past the exit. Nice store though. Frank Parra built it.

Side story, when we brought the Store, the GM had an Italian marble desk. I think it was $20K for it. We didn't see that value back when we sold it.
SHACOS is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Greatest Chrysler, Jeep, Dodge commerials ever steve_biegler Sales 12 06-28-2011 07:45 AM
What's up with Superior Chrysler-Jeep-Dodge? XDCX Automotive Discussions 5 02-13-2009 09:47 PM
Chrysler trying to save Dade Jeep Chrysler Dodge XDCX Automotive Discussions 3 02-13-2009 09:33 AM
Geweke Chrysler Jeep Dodge closes XDCX Automotive Discussions 2 02-04-2009 10:53 PM
What happened to John Irish Chrysler/Jeep/Dodge? XDCX Automotive Discussions 1 09-10-2008 11:01 AM


All times are GMT -7. The time now is 04:17 PM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
Copyright DealershipForum.com - 2008 - 2016