Chrysler fills OLDCO Open Point in Tacoma

[XDCX]

News reports indicate that Chrysler has filled their Open Point in Tacoma by awarding a CJD franchise to Phil Bivens. For the full news report - click here The new dealership is in the exact same location/facility as the terminated dealership.

I think the news is interesting for two reasons:

First, this is the only Open Point that has been filled in the West BC since Chrysler emerged from bankruptcy to the best of my knowledge.

Second, I was convinced that Tacoma Dodge had a great chance to use the new appeal process and get their dealership back. Shows you how much I know.....

I also thought it was interesting the OLDCO dealer submitted a proposal for the Open Point but was it rejected.

On a final note, I guess this also explains why Phil decided to run for Dealer Council - he has a lot more exposure to Chrysler now that he's added a second store.

[The StraightShooter]

Wasn't this the dealer who was so financially strong that he self financed his inventory? If it is I remember him testifying before Congess last summer.

[XDCX]

Originally Posted by The StraightShooter

Wasn't this the dealer who was so financially strong that he self financed his inventory? If it is I remember him testifying before Congess last summer.

It could be the same dealer.

I know the GM testified before Congress last year - I watched him on C-SPAN. But I didn't know the store floored their own inventory - they must have had $5+ Million in new and used cars. (Maybe I missed that part of his testimony?)

The part I remember most about the GM's testimony is he was still "pro-Chrysler" despite everything he'd been through and hoped they'd be eligible to compete for another Chrysler franchise. At the end of the hearing the C-SPAN cameras showed he and Press talking.

[XDCX]

The other comment from the news report I thought was interesting was the comment that the new owner purchased the MOPAR parts inventory from the OLDCO dealer.

I wonder if he matched Chrysler's offer of 68 cents on the dollar or if they worked out other terms?

[SHACOS]

I still can't believe Tacoma Dodge lost their franchise to begin with. I remember watching ads for those guys since I was a kid!

[The StraightShooter]

X,

You gotta read this...

http://energycommerce.house.gov/Pres..._kiekenapp.pdf

[XDCX]

Originally Posted by The StraightShooter

X,

You gotta read this...

http://energycommerce.house.gov/Pres..._kiekenapp.pdf

Thanks for the link - I just read Kiekenapp's testimony.

How can a store like Tacoma Dodge, which earned over $1 Million in 2008, be terminated when a store like Zangara Dodge, which was closed, had no floorline and was being investigated by the State AG, be allowed to live?

There's only one possible answer - Factory politics.

It's hard to have much faith in Chrysler's arbitration process if they've already rejected proposals from stores like Tacoma Dodge.

[scooter]

Originally Posted by XDCX

I think the news is interesting for two reasons:
First, this is the only Open Point that has been filled in the West BC since Chrysler emerged from bankruptcy to the best of my knowledge.

Burlingame CJD was one of the 789 and now Putnum CJD has opened up in Burlingame, different location, but same town. I am just surprised a dealer is willilng to take that investment on this franchise. Chrysler really needed someone in the bay area, they lost a ton of dealers....So Putnum is trying to replace about 5-6 dealers...good luck...

[SHACOS]

Hey, I've been to that store. The old location was really, well, really old. I just never saw Burlingame has much of a CJD store destination. Good luck will be needed to stay profitable.

[XDCX]

Originally Posted by scooter

Burlingame CJD was one of the 789 and now Putnum CJD has opened up in Burlingame, different location, but same town. I am just surprised a dealer is willilng to take that investment on this franchise. Chrysler really needed someone in the bay area, they lost a ton of dealers....So Putnum is trying to replace about 5-6 dealers...good luck...

Thanks for the info - I hadn't heard about Putnam opening a CJD store in Burlingame.

While I wish them a lot of luck, they've got a lot more courage than I do. The prospect of trying to start a new CJD store in the Bay Area would be daunting - there just aren't too many people in that area who buy domestic cars. (In the early 90s I saw reports where Porsche was outselling Plymouth in most of the Bay Area. )

I noticed that Putnam also has other stores including Toyota and Lexus so they must be looking at CJD as a long term investment. I checked out their website and smiled when I noticed they had 170 new cars and 54 used cars in inventory - I bet Chrysler's happy with their new dealer.

[XDCX]

Originally Posted by SHACOS

Hey, I've been to that store. The old location was really, well, really old. I just never saw Burlingame has much of a CJD store destination. Good luck will be needed to stay profitable.

I've been to that store too.

In fact, I was amazed when Lithia found a buyer for that store. It was an old facility in a bad location situated in a market that had a negative bias toward Chrysler products. Not the ideal scenario for making money.

I feel bad for whoever bought that store from Lithia. They managed to stay alive for a year or so and then got terminated as part of Chrysler's bankruptcy.

[XDCX]

Originally Posted by XDCX

I checked out their website and smiled when I noticed they had 170 new cars and 54 used cars in inventory - I bet Chrysler's happy with their new dealer.

I noticed that Putnam reported 15 NVDRs for December - that would be a an 11 month supply of vehicles at their current sales rate.

In fairness, I don't know how long they've been open and I imagine their sales will ramp-up once people know there's a new CJD dealer in the area.

[Moshe @ Performance Brokerage Services]

Originally Posted by XDCX

News reports indicate that Chrysler has filled their Open Point in Tacoma by awarding a CJD franchise to Phil Bivens.

One of the best car dealers I have come across in 20 years as a dealership broker. Talented and a real gentleman. I believe he is ranked number two in sales in the NW after Kellogg. By the way, we have just sold to him the Nissan store across the street. For the press release:http://goo.gl/Mu1xn

Bivens also opened up a Fiat store right next door and is already ranked in the top 5 in the nation!

[rd3311]

Bruce Titus has sold out? Why?

Isn't Bivens an ex-factory type from the old Portland zone office?

He had Steve Moceri's old store in Puyallup WA first when I was still in that area.

[XDCX]

Originally Posted by Moshe @ Performance Brokerage Services

One of the best car dealers I have come across in 20 years as a dealership broker. Talented and a real gentleman. I believe he is ranked number two in sales in the NW after Kellogg. By the way, I have just sold to him the Nissan store across the street. Bivens also opened up a Fiat store right next door and is already ranked in the top 5 in the nation!

Thanks for the update - it's interesting to hear that Phil is adding stores to his group.

I still think Tacoma Dodge was one of the most shocking OLDCO terminations and illustrates how unfair/corrupt the whole OLDCO selection process was. That said, I can't fault Phil for opening his CJDR store to fill the point.

Thanks again for the update - it's always interesting to hear about buy/sells and other dealership opportunities.