Is Chrysler paying dealers to facilitate Project Genesis?

[XDCX]

While I'll be the first to acknowledge I don't always believe everything I read in the newspaper, a report by a Corpus Christi newspaper suggests Chrysler's paying dealers to facilitate Project Genesis. Here's a link to the full report - click here

I don't know the Corpus Christi market but based on the report it appears Chrysler allowed a single point Dodge store and a single point Chrysler/Jeep store to move forward to NEWCO. The Chrysler/Jeep store just sold-out to Lithia and the dealer indicated "she was compensated to accommodate Chrysler Corp.’s plan to consolidate all the brands in an area under the same dealership."

If this report is true it triggers a number of questions, the biggest one being why would Chrysler be paying dealers to consolidate today when they could have terminated them for free as part of last year's bankruptcy?

In my opinion, if the report is true it's just one more indication that the OLDCO selection process was flawed and based more on Factory Politics than a "data driven" matrix.

Any comments from Texas dealers who know the market and the dealers? (I'll move the thread to AREA 51 if requested.)

[ohiobuckeyes]

I would have to say yes. Someone at Chrysler told me off the record, that it was up to the stores to become together. If I was a betting man I would have to say Chrysler wants to rush the process because of the arbatrion (sp) to make it look like it was dine while in bk and or right after.

[XDCX]

Originally Posted by ohiobuckeyes

I would have to say yes. Someone at Chrysler told me off the record, that it was up to the stores to become together. If I was a betting man I would have to say Chrysler wants to rush the process because of the arbatrion (sp) to make it look like it was dine while in bk and or right after.

I don't have an issue with Chrysler paying dealers to complete Project Genesis if that's what they want to do, I just don't think it's fair that 789 dealers were destroyed while others are being allowed to negotiate their own exit plan.

I know I'm beating a dead horse but I just can't get past the injustice of it all.

[possum]

I know Marion, she was adament about adding lines. We were on the DAA together, for a brief period.

At a grass roots meeting in Dallas, she confronted Jim Press about her request to add a line, (Jeep, as I recall), and he assured her it would be taken care of. Of course, she never heard anymore from it.

[SHACOS]

Funny. I just had a conversation about this acquisition with a Lithia employee yesterday. I don't know about the compensation from Chrysler to make this deal happen, but it makes sense.

[LJS]

Just more of the same dirty rotten under handed tactics. Makes me want to puke.

[XDCX]

Originally Posted by possum

I know Marion, she was adament about adding lines. We were on the DAA together, for a brief period.

At a grass roots meeting in Dallas, she confronted Jim Press about her request to add a line, (Jeep, as I recall), and he assured her it would be taken care of. Of course, she never heard anymore from it.

Does it surprise you that Chrysler allowed both dealerships to move forward to NEWCO? Is Corpus Christi more of a metro market or a rural market?

[DealerEx]

metro market