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03-28-2011, 11:19 AM | #1 |
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Is Chrysler's Motor Village of Los Angeles violating State Franchise Laws?
“The California New Car Dealers Association says Chrysler is operating an illegal factory-owned dealership in Los Angeles”
“In California, manufacturers cannot own dealerships within 10 miles of other same-make independently owned stores. Motor Village L.A. is within 10 miles of three other Chrysler dealers, the petition says.” http://www.autonews.com/apps/pbcs.dl...303289981/1078 |
03-28-2011, 12:15 PM | #2 |
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“The dealer association filed a petition March 21 with the California New Motor Vehicle Board calling for an investigation and asking the board to discipline Chrysler, possibly suspending or revoking the store's business license.” From NADA
I wonder if it might have anything to do w/ Motor Village selling 27 Fiats this month. |
03-28-2011, 12:24 PM | #3 |
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I find it hard to believe that with all Chrysler's attorneys they missed that. But if they did HA HA FRICKEN HA!
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03-28-2011, 01:29 PM | #4 |
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Is Chrysler's Motor Village of Los Angeles violating State Franchise Laws?
crowe - Thanks for adding the post about the complaint file against Motor Village of Los Angeles by the California New Car Dealers Association.
I'm going to start a new thread and move your posts to keep the two topics separate. |
03-28-2011, 01:52 PM | #5 |
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Massive rent subvention
Did everyone else see the massive rent subvention that Auburn Hills is allegedly extending to Motor Village?
No rent for six months and then rising from $50K to $90K over the next four years. The rent factor on that $30 Million facility should be $200K/month, not $50K. (I wonder who pays the $30K/month in property tax?) Maybe Auburn Hills will subvent the rent for the rest of their dealers; Motor Village was supposed to be a test-bed for new ideas after-all. |
03-28-2011, 02:06 PM | #6 |
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I like how you think!!!!!
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03-28-2011, 02:16 PM | #7 |
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“The petition alleges the dealer operator, Howard Drake, has no significant investment in the store.”
I wonder if capital loans for Mr. Drake will be written by CJD to show his investment. If so don’t walk Mr. Drake. RUN!!! |
03-29-2011, 08:18 AM | #8 |
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03-29-2011, 09:00 AM | #9 |
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03-29-2011, 09:13 AM | #10 | |
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Quote:
Wow, I haven't looked for a sales report on DealerConnect - if Motor Village has 27 Fiats out for March it sounds like Auburn Hills is propping this store up with product too. |
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03-29-2011, 09:38 AM | #11 | |
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I could be wrong, but I'm pretty sure Howard Drake is a Chrysler employee who is in charge of the BC's MID program. In the past Chrysler's never listed the person buying the store as the dealer until the buy-out is complete. That said, Motor Village isn't a typical MID dealership and that's the basis of CNCDA's complaint. |
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03-29-2011, 10:41 AM | #12 |
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I wonder how CNCDA found out about the rent factor?
I've been wondering, how did the California New Car Dealer Association know the rent factor for Motor Village? Does Auburn Hills have a mole?
I can't think of any public document or filing which would release that information. |
03-29-2011, 03:33 PM | #13 | |
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Who is Howard Drake?
Quote:
I received a PM suggesting Howard Drake was recruited by Auburn Hills to run Motor Village of Los Angeles and he's not a Chrysler employee. There is a Howard Drake who runs the Casa Automotive Group in Southern California, but the group doesn't have any Chrysler franchises. Would Auburn Hills recruit a non-Chrysler dealer to run their $30 Million Factory Store? Also, what happened to the MID Dealer Candidate who was running LaBrea Chrysler/Jeep? (The LaBrea CJ point was closed and relocated to Motor Village - I'm assuming the Dealer Code changed too?) |
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03-30-2011, 01:37 PM | #14 | |
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I'm not sure why Auburn Hills would select a non-Chrysler dealer to run their factory store, but I acknowledge it would be controversial if they selected an active Chrysler dealer too. What happened to the poor guy who was on Paragraph at LaBrea C/J? Wasn't he good enough to run Motor Village or is it that Auburn Hills has no intention of selling off Motor Village like a typical Marketing Investment dealership? |
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03-30-2011, 02:15 PM | #15 |
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