AutoNation closes Desert Dodge in Las Vegas

[XDCX]

AutoNation made headlines in Las Vegas when they closed Desert Dodge with little prior notice. In fact, it appear that their employees didn't have any prior notice at all.

A representative for AutoNation indicated that the store was closed in cooperation with Chrysler LLC to address an over-dealer situation that exists in Las Vegas. Despite the name, Desert Dodge was a full-line Chrysler dealer.

Here's a link to the news report: http://www.lasvegasnow.com/Global/st...av=menu498_1_3

[CL Pgh]

Just check'd out their website:
#2 / 07's
#69 / 08's
#129 / 09's

Story mentioned this was the largest "auto group" in the area... I was thinking those unit numbers might actually be higher. Still... where will they stuff another #200 units???

[XDCX]

Originally Posted by CL Pgh

Just check'd out their website:
#2 / 07's
#69 / 08's
#129 / 09's

Story mentioned this was the largest "auto group" in the area... I was thinking those unit numbers might actually be higher. Still... where will they stuff another #200 units???

Maybe that's why AutoNation's Mike Jackson keeps commenting to the press that they aren't taking more inventory - they still have a pretty deep inventory of 2007s and 2008s. AutoNation does have a powerhouse C/J/D dealer in Phoenix, maybe that's where they'll send the aged units.

The other part of the story that I thought was interesting concerned the "over-dealered" comment. Sometimes I think those of us on the West Coast don't really know what that term means - Las Vegas has a population of almost 2 Million people and only had four Dodge dealers.

My bet is there are a number of markets on the East Coast that would love to have that dealership/population ratio.

[jdemonto]

Originally Posted by XDCX

Maybe that's why AutoNation's Mike Jackson keeps commenting to the press that they aren't taking more inventory - they still have a pretty deep inventory of 2007s and 2008s. AutoNation does have a powerhouse C/J/D dealer in Phoenix, maybe that's where they'll send the aged units.

The other part of the story that I thought was interesting concerned the "over-dealered" comment. Sometimes I think those of us on the West Coast don't really know what that term means - Las Vegas has a population of almost 2 Million people and only had four Dodge dealers.

My bet is there are a number of markets on the East Coast that would love to have that dealership/population ratio.

I have a strange feeling that the Ceo gave a blanket statement, Chrysler has pulled back on project Genesis.

Jason

[CL Pgh]

Originally Posted by XDCX

Sometimes I think those of us on the West Coast don't really know what that term means - Las Vegas has a population of almost 2 Million people and only had four Dodge dealers.

My bet is there are a number of markets on the East Coast that would love to have that dealership/population ratio.

HELL YES!!!! Pittsburgh (Alleg. county) + 2 surrounding counties might hit 2.5mil. population and we have approx. 20+ different CJD location dealerships.

[jdemonto]

Originally Posted by CL Pgh

HELL YES!!!! Pittsburgh (Alleg. county) + 2 surrounding counties might hit 2.5mil. population and we have approx. 20+ different CJD location dealerships.

If you can hang in there, the economy will eventually cripple your competitors and only the strong will survive. Hopefully we are all with the strong.

Jason

[XDCX]

Originally Posted by jdemonto

I have a strange feeling that the Ceo gave a blanket statement, Chrysler has pulled back on project Genesis.

That's a great point about Project Genesis. Unless this deal has been in the works for some time, closing this store as part of Project Genesis does not fit with Jim Press' most recent statements that the program is on hold.

[XDCX]

Originally Posted by CL Pgh

HELL YES!!!! Pittsburgh (Alleg. county) + 2 surrounding counties might hit 2.5mil. population and we have approx. 20+ different CJD location dealerships.

I was thinking of you when I read that.

Because I've spent most of my life on the West Coast I sometimes forget what it's like in the rest of the country. I would have made the same "over-dealered" comment.

It wasn't that long ago that Las Vegas was a red hot market for Chrysler, sales were strong and the dealers were making big money. It's kind of sad to see that it's declined to the point where stores are closing for consolidation.