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Old 03-09-2011, 02:17 PM   #16
ohiobuckeyes
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The fact that Chrysler didn't consolidate Towbin Dodge with Chapman C/J was one of the biggest surprises in the West BC when Chrysler announced the OLDCO/NEWCO list.

Towbin and Chapman are less than 300 yards away from one another and they're definitely in a metro market which according to Project Genesis was the highest priority for consolidation.
In less then 300 yards away last month Towbin sold 95 New Dodge and Ram vehicles. Chapman sold 25 new Chrysler and Jeep vehicles. (No clue if the Chapman stores swap NVDR with their CDJR location "sold" 75 vehicles. Towbin's new CDJR store sold 58 vehicles.)

Things that make you go hmmm
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Old 03-10-2011, 07:50 AM   #17
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The only reason they didn't, was because they were in such a rush to take advantage of their "once in lifetime opportunity" (Jim Press's words) to eliminate the dealers they didn't want, and rebuild the company the way they wanted it, that they overlooked that possibility. If they had done it like GM, with a wind down period, I'm sure they would have seized the opportunity. GM didn't come up with their new agreement immediately after the "wind down" notifications went out either...it was a month or two later when they had had time for the lawyers to go thru it thoroughly and draft an airtight agreement giving them unprecedented control of the dealer body.
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It really does make me wonder.

Chrysler spent millions and hired the best bankruptcy lawyers money could buy and yet they failed to capitalize on their "once in a lifetime" opportunity and re-write their existing dealer agreements with the NEWCO dealers.

To be clear, this is a pro-dealer website and I'm happy Chrysler didn't force their NEWCO dealers into signing a more restrictive dealer agreement. My bet is Chrysler already regrets missing their opportunity and they'll find their future efforts to force dealer consolidation will be challenged by state franchise laws.
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Old 03-10-2011, 09:26 AM   #18
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In less then 300 yards away last month Towbin sold 95 New Dodge and Ram vehicles. Chapman sold 25 new Chrysler and Jeep vehicles. (No clue if the Chapman stores swap NVDR with their CDJR location "sold" 75 vehicles. Towbin's new CDJR store sold 58 vehicles.)

Things that make you go hmmm
In some ways I think your data supports the fact that in metro markets single point dealers can be just as viable (if not more so) than Genesis dealers.

We all know of countless examples where Chrysler merged two stores selling 100 new/month and ended up with one store that sold 150. In fact, I'd be hard pressed to find any examples where Project 2000 or Project Genesis actually resulted in an increase in Chrysler's overall sales in a market.

In the case of Towbin Dodge, as I recall the dealership is mostly landlocked and it would be hard to expand. The sales Towbin would gain from having Chrysler/Jeep would likely be offset by the Dodge deals they lose because they no longer have the same depth of inventory.
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Old 03-10-2011, 06:26 PM   #19
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Columbus , Ohio (Got this via an email from Byers Chrysler about Service Coupons)

Byers Chrysler Jeep just award (02/2011) Dodge and Ram point from across the street a Spitzer point, that was closed during the BK process.

Byers once had a Dodge dealership in Dublin, Ohio it was closed during Bk and award the the Chrysler Jeep Mercedes Kia Maybach Dealership about 3 miles down the road during the Fall of 2009.
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Old 03-11-2011, 08:50 AM   #20
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Byers Chrysler Jeep just award (02/2011) Dodge and Ram point from across the street a Spitzer point, that was closed during the BK process.
It will be interesting to see if Chrysler begins to award missing franchises to existing dealers to complete Genesis or if they'll withhold the missing franchise if the existing dealer has facility or MSR issues.

Shortly after emerging from bankruptcy Landry made it clear to the dealers who wanted to add a missing franchise that Chrysler would require a Millennium II facility commitment. I wonder if Auburn Hills has backed away from that requirement?
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Old 05-19-2011, 08:57 AM   #21
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It will be interesting to see if Chrysler begins to award missing franchises to existing dealers to complete Genesis or if they'll withhold the missing franchise if the existing dealer has facility or MSR issues.

Shortly after emerging from bankruptcy Landry made it clear to the dealers who wanted to add a missing franchise that Chrysler would require a Millennium II facility commitment. I wonder if Auburn Hills has backed away from that requirement?
we are a rural dealer... small numbers (15-20 new cdjr, 15-20 new ford)... we were "awarded" the jeep franchise in the BK, told in order to get it we had to sign a LOI to do new store front and signage, arch... all the new millennium stuff. well at that time things werent the best in the auto world and i made the comment "well, what if we dont want jeep?" i was told "then we got rid of the wrong dealer"... i lil harsh i thought, but i could tell how this was going to go and newco was flexing its muscle. we ended up signing the LOI as we had plans in the back of our head to build a new store in the near future anyways. we were getting alot of heat initially but started to convo about new building and they backed off... but we are getting the heat again now... talked to some other dealers who didnt recieve a new franchise in the BK and didnt sign a LOI... they are not getting any pressure about building updates.

2 years later we are now in the process of getting factory approvals for the new building... what a nightmare. both manufacturers flexing their muscles to the max, demand after demand. there is willingness and ability... this is one thing they dont understand. in a small rural market the "taj mahal" isnt going to do anyone any favors and leave the wrong impression with the rural buyers... let alone the ability to do so.

i want to take a picture of the store now (30 years old, sad sight really) and the plans of the new store and say "take your pick, this one or that one... unless you're thinking of flipping the bill"

anyone got any help for going through this approval process? spose a new thread might make sense.

kinda rambled and didnt proof read...
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Old 05-19-2011, 09:34 AM   #22
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this is one thing they don't understand. in a small rural market the "taj mahal" isnt going to do anyone any favors and leave the wrong impression with the rural buyers... let alone the ability to do so.
Great comment - I couldn't agree more.

When I lived in Western Washington there was a Ford Dealer who build a HUGE facility next to the highway in a rural market. The neighboring dealers started to advertise "Lower overhead = Lower prices" and the message seemed to resonate with rural buyers.

In the case of the Ford Dealer I'm convinced the new facility was more of a detriment than a benefit.

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anyone got any help for going through this approval process?
I'll send you a PM - I know one of our members has been working to get three OEMs to sign-off on his new facility. I'm sure he can relate to your frustrations and may have some helpful information.
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Old 05-19-2011, 10:30 AM   #23
Jeff Duvall
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Sell-it,
Give me a call, in the middle of a renovation for our Ford, Chevrolet, Chrysler Dodge Jeep franchises. Maybe I can help.
Jeff Duvall
cell 706-490-1186
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Old 05-19-2011, 11:12 AM   #24
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Sell-it,
Give me a call, in the middle of a renovation for our Ford, Chevrolet, Chrysler Dodge Jeep franchises. Maybe I can help.
Jeff Duvall
cell 706-490-1186
Jeff - thanks for offering to help a fellow member - you're the best.
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Old 05-20-2011, 09:38 AM   #25
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Yep......King of Cars TV show. I stopped there while in Vegas a couple years ago. On the show they showed sales guys waiting at the curb for customers, I walked through the lot and showroom and NO ONE asked if they could sell me a car or if I had a question. I was there for around 15 minutes. I expected to be swarmed when I got out of the car. Guess I did not look like a buyer!
haaha, Steve thats my luck for sure. Back in early 2004 I walked onto every Mercury lot in this area looking to buy a Marauder. No one ever made an attempt to talk to me. Same goes for internet in same time period, I emailed every Mercury dealer in FL I think. The only response if I got one @ all was "we don't have any".
Same luck with motorcycle dealerships. I was good for 3 to 4 motorcycles or ATVs every year. I always had to ask to buy one, usually would break up a personal conversation between employees to get their attention.
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Old 05-20-2011, 09:53 AM   #26
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Ghost,
I am now a Yamaha/Kawasaki dealer and I GUARANTEE if you walk into my store I will ask you to buy!!!!!! Hell I may insist.

Last edited by steve_biegler; 05-20-2011 at 10:00 AM.
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Old 05-20-2011, 10:06 AM   #27
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Sell It........What do your state franchise laws say? I know I built a new building for my Jeep store and never even sent them a copy of the blueprint. Our law says as long as you are in the same county and improving the location/facility no approval was necessary. BOY DID THAT PISS THEM OFF!
I know with the BK lots has changed, but its worth checking out. Your state dealer assn should be some help.
GOOD LUCK! Don't let the pricks push you around!
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Old 05-21-2011, 07:27 AM   #28
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thanks guys...

jeff... i'll be giving you a call for sure, where are you at?

good point looking into the state franchise laws... just getting into the approval process now so now is the time to stand the ground.

thanks again guys... keep it coming...
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Old 05-21-2011, 12:10 PM   #29
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Clayton, Ga. about 100 miles northeast of Atlanta
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Old 05-25-2011, 09:40 AM   #30
XDCX
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Default Has Chrysler officially backed off Project Genesis?

Has anyone heard anything official that Chrysler's backed off completing Project Genesis by the end of the year or has the whole topic just gone silent?

In some ways it may be a conversation that neither the dealers nor the factory wants to have. From the dealer standpoint Project Genesis means more closing and a new set of winners and losers. From Chrysler's standpoint they may not want to engage in a number of battles they may not be able to win - my bet is State Franchise laws will tie their hands.
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