Shake-up of Seattle Area Dodge Dealers

[XDCX]

It seems like the combination of slow car sales and Chrysler's desire to force dealers to consolidate has hit the Seattle area.

Based on what I've heard the following Dodge Dealers are now closed:

• Jack Carroll's Lynnwood Dodge
• Bill Pierre Dodge in Seattle
• BBC Dodge in Burien

Apparently Town and Country C/J picked up the Dodge franchise from Lynnwood and Kirkland C/J picked up the Dodge franchise from Bill Pierre.

The Dodge franchise for BBC just vaporized.

While I know that this is all just part of "Project Genesis" part of me hates to see some of these dealers close.

No matter how Detroit "spins-it" Chrysler is getting a lot smaller and it will never be what it once was.

[SHACOS]

This seems to be happening all over. Does anyone know what Chrysler does in the case of these closed Stores? Is there an allowance on the number of vehicles that can be given back to Chrysler? Do they buy the building?

[okcarl]

My understanding is that the Building is generally the responsibility of the owner. Thet were either renting or own the property. As far as the inventory is concerned they take back most everything except overage and modified. This is the kicker though, any advertising credits or incentives paid on the vehicles on the lot must be re-paid by the dealer. I know talking to both my Chrysler and GM reps that with all the store closures there is a lot of inventory that they are warehousing and trying to move off to other dealers. GM is even paying us incentive money to take these vehicles from the pool.

[XDCX]

Originally Posted by SHACOS

This seems to be happening all over. Does anyone know what Chrysler does in the case of these closed Stores? Is there an allowance on the number of vehicles that can be given back to Chrysler? Do they buy the building?

Great question. I know that in the case of BBC Dodge and Lynnwood Dodge the dealers are now operating their businesses as used car dealerships. I'm not sure what Bill Pierre has done with is property.

[XDCX]

Originally Posted by okcarl

My understanding is that the Building is generally the responsibility of the owner. Thet were either renting or own the property. As far as the inventory is concerned they take back most everything except overage and modified. This is the kicker though, any advertising credits or incentives paid on the vehicles on the lot must be re-paid by the dealer. I know talking to both my Chrysler and GM reps that with all the store closures there is a lot of inventory that they are warehousing and trying to move off to other dealers. GM is even paying us incentive money to take these vehicles from the pool.

Great information - thanks.

You make an excellent point about the dealer having to repay advertising credits and incentives.

I've been wondering, when the manufacturer stops offering retail incentives on prior model year vehicles and just sends the dealer an incentive check based on the dealer's inventory, does the flooring source ask for that money?

[XDCX]

I was just checking the inventory of "Lynnwood Autos" and noticed that they had a 2007 Ram 2500 that was up-fitted with a service box in their inventory. The truck only had 241 miles.

My guess is that this is an example of a vehicle that the factory wouldn't take back and now the dealer is stuck with it.

[XDCX]

I just read the following story about the closure of BBC Dodge:

http://seattlepi.nwsource.com/busine...ml?source=mypi

Not cool.

The newspaper report indicated that the employees didn't know that the store was going to drop their Dodge franchise until a truck came to the lot to remove the Brand Sign. That's just not right.

Imagine working for a dealership for 20 years and then learning your future has been radically changed because a truck is removing the Brand Sign. I think there's some "bad karma" out there for the Manager/Owner who thought it was a good idea to keep his employees in the dark.