What will happen with the OLDCO Dealer inventories?

XDCX · 05-19-2009, 12:33 PM

What will happen with the OLDCO Dealer inventories?

On a personal level, one of the greatest disappointments for me was the fact Chrysler decided to use their Bankruptcy Powers to sever dealer agreement and saddle the OLDCO dealers with inventories of new vehicles and parts.

For a company that's been losing $1 Billion per month for ages, it angers me they feel it's necessary to place a burden on 789 dealers which has the potential to drive many of them into bankruptcy.

In fairness, Chrysler indicates they have a plan which will facilitate the movement of vehicles from OLDCO dealers to NEWCO dealers. The purpose of this poll is to survey our members and ask if they feel Chrysler's efforts will be successful.

Please take our poll and share your thoughts with the rest of the forum.

Note to members - this thread is posted in a PUBLIC forum

XDCX · 05-19-2009, 01:21 PM

As I mentioned in another thread, I'm not sure exactly how Chrysler intends to help OLDCO dealers sell their inventory to NEWCO dealers?

This is my basic impression - please feel free to correct me where I'm wrong:

Shortly after the 06/09/09 Termination Date Chrysler compiles OLDCO Vehicle Inventory List
Chrysler's DMs present Inventory List to NEWCO dealers and solicit orders
Chrysler never enters the transaction - strictly between OLDCO dealer and NEWCO dealer
Pricing of the vehicles is unclear - Invoice? Discounted?
Chrysler inspects entire OLDCO inventory on one day at dealer's location
Shipment takes place when funds are exchanged
Shipping expense is negotiated between dealers

As before, this is just my understanding. Please feel free to update this thread with corrections.

kcrites · 05-19-2009, 01:42 PM

just received a call from my DM he wanted to know our finance source. I asked Why he said that there would be some redistributed cars and they needed to know what are source was. At that time I let him know that I will not accept any redistributed units and effective immediately we were on finance hold. any body else get a call???

ssdd · 05-19-2009, 01:55 PM

nothing from the sebc I don't think they will call until the gmac temporary line is turned on.

possum · 05-19-2009, 02:05 PM

kcrites, please don't antagonize an all powerful "partner". They can turn on a dime!

CL Pgh · 05-19-2009, 02:09 PM

Quote:

Originally Posted by ssdd

nothing from the sebc I don't think they will call until the gmac temporary line is turned on.

X 2! Wierd that your dm doesn't know who you're floored with??? :shades:

kcrites · 05-20-2009, 05:54 AM

new dm he doesnt know anything

possum · 05-20-2009, 06:03 AM

There are mostly "new hire" DM's around here who are in way over their head. I'm sure they are minimum wage kids, and will just have to learn on the job. I've wondered if ours has ever even bought a car!

Kitfox · 05-20-2009, 06:54 AM

Sounds like yours is much more qualified than mine

XDCX · 05-20-2009, 07:05 AM

Has anyone heard what the selling price of the OLDCO vehicles will be?

Is Chrysler going to try and help sell the vehicles at Invoice, or do you think they'll just provide the list and let the market set the price?

Kitfox · 05-20-2009, 08:10 AM

I do know they are wanting the independant banks that floorplan terminated dealers to take a big discount. I won't repeat what one of them told me their answer was :thumbsdown_old:

XDCX · 05-20-2009, 09:00 AM

Quote:

Originally Posted by Kitfox

I do know they are wanting the independant banks that floorplan terminated dealers to take a big discount. I won't repeat what one of them told me their answer was :thumbsdown_old:

I want to make sure I understand - has Chrysler contacted some of the independent banks and offered to "back-stop" their floored inventory to keep it from going to auction? Or have I misunderstood your post?

If it's the former, I guess I wouldn't be surprised. The one thing I've noticed in this process is Chrysler's not bashful - they expect everyone who has ever done business with them to offer up some type of concession.

possum · 05-20-2009, 09:19 AM

Everyone, but their terminated little DM's etc, they got a pretty nice going away offer.

Kitfox · 05-20-2009, 01:12 PM

Jim Press is asking the banks to take a big hair cut to help the dealers in disposing of their inventory. As you said, they are not bashfull asking others to sacrafice, and then they can say how much they tried to help.

ssdd · 05-20-2009, 01:27 PM

how much of a haircut is CFC going to offer up?

View Poll Results: What will happen with the OLDCO Dealer inventories?
Chrysler's efforts succeed and OLDCO Dealers wholesale their vehicles with minimal losses	2	6.67%
Chrysler's efforts help but problems with GMAC floorlines limit buyers - moderate wholesale losses	10	33.33%
Chrysler's efforts fail and many OLDCO Dealer vehicles go to Auction - major wholesale losses	18	60.00%
Voters: 30. You may not vote on this poll

05-19-2009, 12:33 PM	#1
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	What will happen with the OLDCO Dealer inventories? *What will happen with the OLDCO Dealer inventories?* On a personal level, one of the greatest disappointments for me was the fact Chrysler decided to use their Bankruptcy Powers to sever dealer agreement and saddle the OLDCO dealers with inventories of new vehicles and parts. For a company that's been losing $1 Billion per month for ages, it angers me they feel it's necessary to place a burden on 789 dealers which has the potential to drive many of them into bankruptcy. In fairness, Chrysler indicates they have a plan which will facilitate the movement of vehicles from OLDCO dealers to NEWCO dealers. The purpose of this poll is to survey our members and ask if they feel Chrysler's efforts will be successful. Please take our poll and share your thoughts with the rest of the forum. Note to members - this thread is posted in a PUBLIC forum

05-19-2009, 01:21 PM	#2
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	My understanding of the OLDCO to NEWCO transfer process As I mentioned in another thread, I'm not sure exactly how Chrysler intends to help OLDCO dealers sell their inventory to NEWCO dealers? This is my basic impression - please feel free to correct me where I'm wrong: Shortly after the 06/09/09 Termination Date Chrysler compiles OLDCO Vehicle Inventory List Chrysler's DMs present Inventory List to NEWCO dealers and solicit orders Chrysler never enters the transaction - strictly between OLDCO dealer and NEWCO dealer Pricing of the vehicles is unclear - Invoice? Discounted? Chrysler inspects entire OLDCO inventory on one day at dealer's location Shipment takes place when funds are exchanged Shipping expense is negotiated between dealers As before, this is just my understanding. Please feel free to update this thread with corrections.

05-20-2009, 07:05 AM	#10
XDCX Administrator Join Date: Nov 2007 Posts: 14,869	Does anyone know what the selling price is supposed to be? Has anyone heard what the selling price of the OLDCO vehicles will be? Is Chrysler going to try and help sell the vehicles at Invoice, or do you think they'll just provide the list and let the market set the price?

Thread Tools
Show Printable Version Email this Page
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

Welcome to DealershipForum.com

Click Here to Register Now

05-19-2009, 01:42 PM	#3
kcrites New Member Join Date: Feb 2008 Posts: 26	just received a call from my DM he wanted to know our finance source. I asked Why he said that there would be some redistributed cars and they needed to know what are source was. At that time I let him know that I will not accept any redistributed units and effective immediately we were on finance hold. any body else get a call???

05-19-2009, 01:55 PM	#4
ssdd Senior Member Join Date: Feb 2008 Posts: 1,046	nothing from the sebc I don't think they will call until the gmac temporary line is turned on.

05-19-2009, 02:05 PM	#5
possum Senior Member Join Date: Jan 2009 Posts: 1,122	kcrites, please don't antagonize an all powerful "partner". They can turn on a dime!

05-20-2009, 05:54 AM	#7
kcrites New Member Join Date: Feb 2008 Posts: 26	new dm he doesnt know anything

05-20-2009, 06:03 AM	#8
possum Senior Member Join Date: Jan 2009 Posts: 1,122	There are mostly "new hire" DM's around here who are in way over their head. I'm sure they are minimum wage kids, and will just have to learn on the job. I've wondered if ours has ever even bought a car!

05-20-2009, 06:54 AM	#9
Kitfox Member Join Date: Oct 2008 Posts: 93	Sounds like yours is much more qualified than mine

05-20-2009, 08:10 AM	#11
Kitfox Member Join Date: Oct 2008 Posts: 93	I do know they are wanting the independant banks that floorplan terminated dealers to take a big discount. I won't repeat what one of them told me their answer was :thumbsdown_old:

05-20-2009, 09:19 AM	#13
possum Senior Member Join Date: Jan 2009 Posts: 1,122	Everyone, but their terminated little DM's etc, they got a pretty nice going away offer.

05-20-2009, 01:12 PM	#14
Kitfox Member Join Date: Oct 2008 Posts: 93	Jim Press is asking the banks to take a big hair cut to help the dealers in disposing of their inventory. As you said, they are not bashfull asking others to sacrafice, and then they can say how much they tried to help.

05-20-2009, 01:27 PM	#15
ssdd Senior Member Join Date: Feb 2008 Posts: 1,046	how much of a haircut is CFC going to offer up?

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
What will happen to Ford?	Slo	Automotive Discussions	15	06-16-2009 11:37 AM
Interesting: New St. Louis OldCo Dealer Suit	RckChlk	Sales	2	06-11-2009 09:34 AM
Uploading inventories	AmexBlackG5	Automotive Discussions	2	04-19-2008 03:40 PM