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02-21-2011, 01:54 PM | #1 |
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Is Chrysler still pushing dealers to complete Project Genesis by the end of 2011?
I know Peter Grady has been quoted stating that Chrysler wanted to complete 100% of their "Project Genesis" consolidation by the end of this year. Does it appear Chrysler's pushing their remaining single-point dealers to consolidate, or has this priority drifted to the back-burner?
Here's an example where a single point Chrysler/Jeep dealer in New Hampshire recently sold-out to their neighboring Dodge dealer - click here The newspaper report indicated the dealers have been discussing a consolidation since last September, but it didn't give the impression that they were being forced to consolidate. Frankly, I'm surprised one of the dealers didn't get axed as part of the 789 terminations. Are there many single-point stores left in your BC? |
02-21-2011, 02:22 PM | #2 |
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We have a single point close to us Dodge, we know them very well. They said they have not been contacted on the issue for the last year.
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02-21-2011, 03:40 PM | #3 | |
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I'll have to send him an email and ask if he has any insight - it's been awhile since he's been on the forum. (If you're new to DealershipForum and you don't know who Ralph is - click here) |
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02-21-2011, 04:51 PM | #4 |
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In our Sales District they is a Jeep, Dodge store and a single line Jeep dualled with Import. Neither of these stores are close to each other. The single line Jeep store (w Import) is in a county seat town, and their is no Chrysler or Dodge Dealership. "Very Small Hole in the Wall" dealership. The Dodge, Jeep store is in a town there Chrysler took the "Chrysler" store back in BK. No clue if any of these stores are going to adding a additional points.
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02-21-2011, 10:21 PM | #5 |
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Is Auburn Hills holding Fiat Frachises hostage?
I heard a rumor there's a dealer who had been awarded a Fiat Franchise but Chrysler won't activate the Dealer Agreement until he completes Project Genesis with one of his single point stores. (Apparently Auburn Hills doesn't care if he's a buyer or a seller, they just want to consolidate two single-point stores.)
It's third hand information, so take it with a grain of salt. That said, it's probably the only bargaining chip Auburn Hills has to play with right now. To this day I remain amazed that Chrysler didn't use their bankruptcy power to force a new Dealer Agreement on the NEWCO dealers back in 2009. |
03-02-2011, 10:06 AM | #6 | |
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He and his son are working together and they're happy in their post-Chrysler world. At this point, I think he prefers to look forward instead of back. Concerning the original topic, I'll update this thread tonight with some of the stores in the West BC that still need to be consolidated. I'm betting there's no way Chrysler can complete Project Genesis by the end of the year. |
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03-04-2011, 11:43 AM | #7 | |
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Chrysler dealers in the West BC that still need to consolidate for Project Genesis
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That said, if the West BC still has this many unconsolidated dealers is there any possibility that Auburn Hills will be able to achieve their goal of 100% Project Genesis by the end of the year? |
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03-04-2011, 02:34 PM | #8 |
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Rainier Dodge in Olympia WA was an MID store back in the late 90's, it was a slow track then I think his name was Gene or something like that. The C/P had sold out at that time, it should have happened back then. Olympia is not a good car town, low volume and gross etc. If he is still there, good for him. Maybe he can buy or be bought this time.
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03-04-2011, 06:41 PM | #9 | |
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You're thinking of Gene Johnson and he's still the owner of Rainier Dodge. I agree with your assessment of the Olympia market and amazingly Gene's been able to survive as a single point Dodge store selling about 20 new cars per month. The C/J store, Olympia Chrysler/Jeep, is owned by Bruce Titus who is the son of a very successful mega-dealer. As I recall, Bruce has several other stores and I doubt the C/J store is a significant part of his operation. Hopefully they'll be able to do a deal, but unless I'm missing something I don't think Chrysler has much of a "club" to force the dealers to consolidate. As I've mentioned before, I'm amazed Chrysler didn't force the single point NEWCO dealers to sign a term dealer agreement that provided Auburn Hills with more power. |
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03-08-2011, 10:20 AM | #10 |
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03-08-2011, 10:30 AM | #11 |
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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!
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03-08-2011, 10:39 AM | #12 | |
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I was living in Gig Harbor WA in the late 90's after selling my C/P store in Orlando, then working for the Mitsubishi distributor in San Juan P.R. for a few years. I did know a few other guys in that area, all C/P dealers in Puyallup, Renton, Auburn and Vancouver WA. I think that a couple of these guys may have sold out also, when they had still had something to sell. Last edited by XDCX; 03-08-2011 at 11:47 AM. Reason: Add quote tags to make the post easier to read/follow |
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03-08-2011, 01:33 PM | #13 | |
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I'll send you a PM (Private Message) - we definitely know a lot of the same dealers and I was living in Western Washington at the same time you were. |
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03-08-2011, 03:00 PM | #14 |
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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. Towbin has opened a new CJDR dealership (Prestige CJDR) since Chrysler emerged from bankruptcy and they've been awarded a Fiat franchise. It will be interesting to see if Auburn Hills holds Towbin's Fiat franchise hostage until the Genesis issue is resolved. |
03-09-2011, 07:45 AM | #15 | |
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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. . Last edited by XDCX; 03-09-2011 at 08:06 AM. Reason: Fix quote tag to make the post easier to read/follow |
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