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Old 11-09-2015, 09:15 AM   #1
XDCX
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Default One of the 789, Livonia Chrysler Jeep set to open this fall

News reports indicate that Livonia Chrysler Jeep in Livonia, MI is set to open this fall after being closed over six and a half years ago as part of Chrysler's OLDCO terminations.

For those who think that the U.S. Justice System is broken, perhaps you can add the saga of Livonia Chrysler Jeep to your set of examples.

Here's a brief recap of Livonia Chrysler Jeep's legal saga:
  • Livonia Chrysler Jeep one of 789 OLDCO Chrysler Dealers terminated
  • Congress approved an Arbitration Appeal process for the OLDCO Dealers
  • Livonia Chrysler Jeep wins their Arbitration Case
  • Chrysler issues Letter of Intent to Livonia Chrysler Jeep but since they had already appointed a new dealer for the existing market, Crestwood CJDR, Livonia Chrysler Jeep would not be allowed to open in their existing facility due to restrictions in Michigan's franchise laws
  • Livonia Chrysler Jeep and other OLDCO Dealers sue Chrysler in Federal Court and lose at the District Level but win on appeal
  • FCA tried to appeal the latest court decision to the U.S. Supreme Court but the court refused to hear the case
For a link to the news report that provides more details - click here
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Old 11-10-2015, 06:32 AM   #2
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Why would you want to open a dealer when you have to fight the manufacturer to have it?

That's like marrying a woman you hate.
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Old 11-10-2015, 07:07 AM   #3
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Why would you want to open a dealer when you have to fight the manufacturer to have it?

That's like marrying a woman you hate.
That was my thinking. If they don't want you, it sure seems like they would make your life a living hell.
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Old 11-10-2015, 09:29 AM   #4
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Originally Posted by TNtech View Post
Why would you want to open a dealer when you have to fight the manufacturer to have it?

That's like marrying a woman you hate.
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Originally Posted by Txflyer View Post
That was my thinking. If they don't want you, it sure seems like they would make your life a living hell.
I'm inclined to agree.

Especially in this case where it appears the dealer will have to terminate his existing Mitsubishi franchise so he can use the facility for Chrysler/Jeep. Additionally, now Livonia Chrysler/Jeep will have to compete with a new full-line CJDR dealer that wasn't in the market when their store was closed as part of the OLDCO termination.

That said, I have heard second hand that an OLDCO dealer who was reinstated after arbitration indicated relations with FCA were actually pretty good. Apparently Chrysler has had so many people retire or leave the company since the OLDCO terminations that a lot of those people who were part of the termination process are long gone and the new people are too preoccupied with their current lives to care about the past.
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Old 11-12-2015, 05:24 PM   #5
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Why would you want to open a dealer when you have to fight the manufacturer to have it?

That's like marrying a woman you hate.
I totally disagree here guys....it's not the entire organization that terminated this dealer, it was only a handful of gutless weasels (Jim Press, Cerberus). There has been no animosity what so ever toward me since our reinstatement and I even testified for a dealer on Long Island a couple of years back who is still battling with them. There's some great people working at Chrysler, unfortunately there were a few spineless parasites (Minimum Bob Nardelli)that would have said or done anything to save their own sorry ass....

Last edited by XDCX; 11-14-2015 at 07:43 AM. Reason: Fixed quote tag to make the post easier to follow
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Old 11-14-2015, 07:45 AM   #6
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I totally disagree here guys....it's not the entire organization that terminated this dealer, it was only a handful of gutless weasels (Jim Press, Cerberus). There has been no animosity what so ever toward me since our reinstatement and I even testified for a dealer on Long Island a couple of years back who is still battling with them. There's some great people working at Chrysler, unfortunately there were a few spineless parasites (Minimum Bob Nardelli)that would have said or done anything to save their own sorry ass....
Thanks for sharing your experience - it's great to hear that FCA isn't treating the reinstated OLDCO Dealers any different than they're treating the rest of their dealers.

Your comments echo what I've heard second hand from another reinstated OLDCO dealer.
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Old 11-14-2015, 05:45 PM   #7
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Looks like things are up and running -- the official Dealer.com for the new Livonia Chrysler Jeep is live online! http://www.livoniachryslerjeep.com/

Looks like a reasonable inventory so far, too!
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Old 11-15-2015, 01:05 PM   #8
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Looks like things are up and running -- the official Dealer.com for the new Livonia Chrysler Jeep is live online! http://www.livoniachryslerjeep.com/

Looks like a reasonable inventory so far, too!
Thanks for the link that was very interesting. I agree the start-up inventory is impressive - 265 units.

I was a bit surprised to see that 55 of the units were 2015 models - I wonder if Livonia C/J placed their vehicle orders some time ago or whether the vehicles are late build-out units?
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Old 11-16-2015, 02:43 PM   #9
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Grand Cherokee is late build out this year. Retail orders for MY2015 went through October allocation for December production. The January production for Grand Cherokee will be pre-spec only, so we are December orders for retail inventory, maybe on the ground for February.

2016 300s started production a few months back but 2015s are still plentiful, so it's possible that they ordered them a few months ago or maybe the Great Lakes BC had some in the order bank? Not sure.

I knew this story sounded familiar -- my parents had mentioned it to me when they heard that they were having to close their Mitsubishi point to add C-J... my parents live about 30 miles away from Livonia (and 30 miles the opposite direction for Auburn Hills)... so Chrysler dealings make the newspaper quite often!
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Old 11-17-2015, 08:25 AM   #10
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Grand Cherokee is late build out this year. Retail orders for MY2015 went through October allocation for December production. The January production for Grand Cherokee will be pre-spec only, so we are December orders for retail inventory, maybe on the ground for February.

2016 300s started production a few months back but 2015s are still plentiful, so it's possible that they ordered them a few months ago or maybe the Great Lakes BC had some in the order bank? Not sure.
Thanks for the information.

When I noticed the 2015 models in inventory my first thought was either Sales Bank units or reassignments from a terminated dealership but then I thought that didn't make sense because both of those situations are mostly historical issues.

Your explanation makes better sense - Livonia likely ordered the vehicles while certain models were still in an extended build out.

Quote:
Originally Posted by mryan55 View Post
I knew this story sounded familiar -- my parents had mentioned it to me when they heard that they were having to close their Mitsubishi point to add C-J... my parents live about 30 miles away from Livonia (and 30 miles the opposite direction for Auburn Hills)... so Chrysler dealings make the newspaper quite often!
It would be interesting to find out how many Mitsubishis Livonia was retailing and whether it would be possible to keep the franchise alive in another location.

That said, Mitsubishi is still a pretty weak franchise and I'm guessing that selling foreign cars in Michigan is still a mostly uphill battle.
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Old 11-17-2015, 03:52 PM   #11
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There are still reasonable number of units that are built for the business centers. I see this more with the Midwest BC, normally about the time that a new point is awarded. The 2015 Grand Cherokees are easy to explain, not sure why there are so many 2015 300s though -- I don't think there are any terminated dealers in the vicinity.

If my memories of growing up in Detroit remain correct, the long-term Mitsubishi dealer on that side of town was John Rogin Mitsubishi and Isuzu -- obviously one is gone now and one is very weak, so there's a chance that he sold to the Livonia CJ folks after the Chrysler bankruptcy rather than continue operating a Mitsubishi and Isuzu store out of his own pocket. Just a guess.
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Old 11-19-2015, 09:11 AM   #12
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There are still reasonable number of units that are built for the business centers. I see this more with the Midwest BC, normally about the time that a new point is awarded. The 2015 Grand Cherokees are easy to explain, not sure why there are so many 2015 300s though -- I don't think there are any terminated dealers in the vicinity.
I remember in the old days the BCs used to get their own allocation that they could use as they saw fit. Some BCs were much more aggressive than others but almost all of them built the hot products so they'd have some "bait" to sell the wholesale units.
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Old 11-19-2015, 09:43 AM   #13
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Yes, indeed. I just took the bait yesterday to get some V8 Big Horn trucks! In exchange for 6 Grand Caravans. If nothing else, I figured that we will need some extra vans on the ground since there will be a few months without production as they ramp up for production of the 2017 model at Windsor. Should see the final retail model at the Detroit Auto Show in January.
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Old 11-20-2015, 08:43 AM   #14
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Yes, indeed. I just took the bait yesterday to get some V8 Big Horn trucks! In exchange for 6 Grand Caravans. If nothing else, I figured that we will need some extra vans on the ground since there will be a few months without production as they ramp up for production of the 2017 model at Windsor. Should see the final retail model at the Detroit Auto Show in January.
I think you made a smart move given the fact the minivans will be out of production for a few months.

Historically Chrysler has always done a good job of helping dealers get rid of previous model inventory when they launch a new vehicle and often the customers who wait to see the new model would rather have the older version once they compare pricing.

Concerning "bait" - I think it's an age old game that's been played with the dealers and factories for generations. One of my favorite stories was when a dealer indicated he agreed to take some Dodge St. Regis sedans so he could get some Dodge Omnis - this was during the 1979 gas crisis.

Who would have figured a lowly Dodge Omni would be "bait."
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Old 12-02-2015, 12:05 PM   #15
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Livonia CJ and a few other Detroit area dealers that were reinstated or currently in process just got some coverage in Automotive News today...

http://www.autonews.com/article/2015...-of-bankruptcy
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