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The Real Story on Chrysler's Dealer Network

by Peter Grady

July 16, 2009 3:48 PM

Peter Grady, Vice President Network Development and Fleet, Chrysler Group LLC

There’s been a lot said about why Chrysler LLC decided to trim its dealer network and how it chose those dealerships that would not go forward as part of the new Chrysler Group LLC. I was there working on these issues and participating in the decisions. I’m sorry to say a lot of what’s been said and written is wrong, or, at the least, misleading.

As Congress considers legislation aimed at reversing our decisions, I feel it’s important to set the record straight—not with opinion or rhetoric, but with straight facts. Just like those paint sets we played with as kids, it’s best to do this by the numbers. So here goes.

We chose the network that we felt would best represent the new Chrysler Group LLC in each and every market. The process began with a thorough review of every market, and the realistic sales volume opportunity given the significantly reduced industry. We then chose the proper number of dealers for each market so that those dealers could realize a return on their investment, and ultimately further invest in the market and our customers.

We reduced our U.S. dealer network by 789 dealers, leaving 2,385 doing business across the nation. Critics have complained that this move left customers in many areas underserved. On the contrary, of the 2,385 remaining dealers:
 1364 Chrysler, Jeep®, and Dodge dealers are located in rural areas.
 592 Chrysler, Jeep and Dodge dealers serve the 124 largest metro areas.
 429 Chrysler, Jeep and Dodge dealers serve the next largest population areas, or what we call secondary markets.

On the other side of the coin, our rationale for choosing which dealerships would not be going forward with the new company has been criticized as unfair and unfounded. That accusation is rebutted in large part by a key finding by U.S. Bankruptcy Court Judge Arthur J. Gonzalez, who wrote, “The Court also finds that no evidence has been presented to the Court showing that the Debtors made their individual rejection decisions irrationally, such that the rejections demonstrate bad faith or whim or caprice.” This is no small statement. Thirteen Chrysler employees were questioned thoroughly by dealer lawyers in depositions, including Bob Nardelli, Jim Press, Steven Landry and me. Chrysler employees testified and provided statements at the hearing on the sale of assets to the new Chrysler Group and the hearing on rejected dealers. Many rejected dealers also testified and were deposed. In all, some 350,000 pages of Chrysler documents were turned over to dealer lawyers and the bankruptcy court for examination.

Together with that Court finding, the numbers make the case.
 The 789 rejected dealers achieved on average only 73 percent of their contractual minimum sales responsibility. This resulted in 55,000 missed vehicle sales and $1.5 billion in lost revenue to Chrysler. This represents lost economic value to the local communities and states, as well.
 It represents $33 million in annual costs to the company to maintain the 789 discontinued dealers for everything from personnel to support ordering, auditing, processing of payments, and other myriad of administrative services.
 It costs the company $150 million annually for marketing and advertising for the 789 dealers—that’s above and beyond dealer contributions.
 It would cost $1.4 billion over four years to develop and engineer overlapping “sister” vehicles, if a significant minority or a majority of our dealer network did not sell all three brands under one roof.

The fact is Chrysler didn’t just jump into reducing its dealer network. The process began more than a decade ago with widespread dealer support. However, the bankruptcy reorganization made it necessary to accelerate the reduction and complete it during the court process.

If Congress reverses this process, it flies in the face of a U.S. vehicle market that has declined 40 percent since 2007. Indeed, the U.S. dealer network was built to serve a market that once sold 16 million vehicles a year. Those days are gone.

Last year, annual vehicle sales industry wide in the U.S. dropped to 13.5 million units and for 2009, that number is expected to fall to 10 million units.
There are simply too many dealers for not enough sales.
When there are too many dealers in an area each dealer is less profitable and that means a reduced ability to invest in the business, risking a negative customer experience. You only get one chance at a first impression and once a customer is lost, it’s very difficult to win them back.
Too many dealers in an area drives down vehicle values due to unhealthy competition, and that can chill residual values, costing consumers money when they trade in their vehicles.
It also makes it tough to hang onto the best sales people who might triple their income at dealerships selling other makes. More numbers:
 233--Average annual vehicle sales at the 789 rejected dealers
 405—Average annual vehicle sales at Chrysler LLC dealerships prior to the recent dealer network adjustments.
 525—Average annual sales at U.S. dealerships.
 692—Average annual sales at Nissan dealerships
 1,219—Average annual sales at Honda dealerships
 1,292—Average annual sales at Toyota dealerships

Some final numbers: They relate to the 789 rejected dealerships, and Chrysler’s efforts to provide a “soft landing” for them.
 More than 50 percent are still in business selling other manufacturers’ new vehicles, selling and servicing used vehicles, or operating new business ventures such as acting as a buyer’s advocate for consumers purchasing new vehicles.
 100—the percentage of remaining vehicle inventory redistributed as a result of Chrysler working with major wholesale floorplan lenders. We weren’t obligated to help out with this; we just felt it was the right thing to do.
 590 requested assistance from Chrysler with parts distribution, with 528 (almost 90 percent) receiving commitments for redistribution.

All we ask is that Congress, dealers, journalists, and of course, our customers, take a close look at the numbers. I’m convinced they add up to a true representation of why we had to make some decisions about our dealer network that were not only necessary and tough, but, ultimately, fair.

Tags: Jeep brand , Chrysler , Dodge , Dealers , Sales and Marketing , The Suits

Comments [36]

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36 Comments

jcm Jul 17, 2009, 2:29 PM

Mr. Grady. I would suggest you concentrate on digging your company out of the financial hole you are in an let the political process function as it is designed, instead of writing propaganda that will inevitably harm your company in the long run. Remember that you are on my dime right now. You would not have a job or an income right now without my taxpayer money. So come down off your high horse and put aside your arrogant attitude and concentrate on how you are going to pay back that 15 billion dollars you borrowed from me the taxpayer. Your company needs the leadership it once had under Iacocca and Pappert. Those guys would never have made the comments that you have made. They would instead be spending their time devising a way to get their company back in the black again. It is my belief that your company is losing a billion dollars a month right now and that you will be back in Washington soon asking for more of my hard earned taxpayer dollars to pay your country club membership. So once again get back to work, you are on my dime!

BigShot Jul 17, 2009, 7:43 PM

Another boy wonder who has probably never spent a day in a dealership is attempting to impress the public with his ability to count the beans and distort the facts. Instead of reporting on the "significantly reduced industry", why don't you look into the mirror and figure out who was driving the bus during this period of lost market share and sales? Then figure out why it happened. Are there less buyers in the market? It wasn't the dealers who were calling the shots and making the decisions about what to build and how to market the product. It wasn't the UAW who was calling the shots, it was you. Suddenly, Chrysler is concerned about dealer profits and first impressions? For years you have done everything possible to strip the dealers of profits. Now that your plan has become reality, you are suddenly concerned? Look at your "numbers", you didn't retain dealers with the highest CSI scores. You weren't worried about "first impressions". You were worried about who had the newest buildings and the shiney showrooms. Proving again that you don't have a clue about the retail end of this business. You speak of 789 dealers who were terminated, but fail to mention that the real number is 788. Maybe you can explain why one dealer in Pittsburgh was able to get his franchise back when there was no appeal process. As far as Judge Gonzalas is concerned, he was a hand picked Judge who was completely biased in his ruling. Who was in such a hurry to push this process through that he never gave the evidence or the 350,000 pages of propaganda a second thought. For his efforts, the Judge was rewarded with a new 14 year term. I noticed that you pointed out that the terminated dealers were only attaining 73% of their MSR. How many of the retained dealers were at or above 100% of their MSR? In an industry that has declined by 40% since 2007, how could you expect every dealer maintain 100% of MSR? Let us look at the "numbers", you claim to have lost 55,000 sales from your "weaker dealers", then you claim there were just too many dealers. Wouldn't your closely located "super dealers" be able to pick up those lost sales with there super shiney showrooms? You claim that the 789 terminated dealers cast Chrysler $33 million annually to maintain. This is what working people call total garbage. The facts are, when Chrysler advertises, it buys for an area, not any particular dealer. It doesn't matter how many dealers are in that area, the cost is the same. As far as administrative services and the rest of the of the so called drain from the dealers, this is just more garbage. The average dealer pays around $30,000 per year in fees to Chrysler. Most dealers haven't seen a field rep in years. The rest of those "administrative costs" are passed on to the dealers and ultimately onto the consumers. No one is being fooled with your "numbers". You seemed to have conceeded defeat in stating, "those days are gone". It sems to me that your time and efforts would be beeter spent trying to figure out how to increase sales instead of making excuses for losing sales. As far as sale people are concerned; the average sale person sells 10 vehicles per month. If a store sells 30 vehicles per month, they have three sales people. If a store sells a 100 vehicles per month, they employ 10 sales people. It should be a requirement for you people to actually work in a dealership before you are allowed to touch anything. With regards to the vehicle and parts and special tools redistribution; your numbers are a work of fiction and dishonest at best. Those are the real numbers and those are the real facts that I would be thrilled to debate with you anytime.

Rejected Jul 17, 2009, 7:43 PM

Old adage - liars figure, figures lie. Mr. Grady most certainly uses figures to his advantage, There was no, could not be a soft landing. The cords were cut on the parachute - a death spiral. An immoral bankruptcy procedure.

confused Jul 18, 2009, 10:17 AM

WE HAVE ONE CHRYSLER DEALER LEFT IN CHARLOTTE NC, WITH A POPULATION OF OVER 600,000 IN THE CITY LIMITS AND 930,000 IN MECKLENBURG COUNTY.PEOPLE LIVE IN A CITY FOR CONVENIENCE. ONE DEALER CANNOT MEET THE NEEDS OF THIS MANY CONSUMERS.THE DEALERSHIP ON SOUTH BLVD THAT IS BEING CLOSED WAS JUST BUILT LAST YEAR,IT IS ON ONE OF THE BUSIEST ROADS IN THIS CITY. WHICH IS FREE ADVERTISING FOR CHRYSLER.THIS DEALERSHIPS SALES NEEDED RESTRUCTURING.BUT SHOULD NOT BE CLOSED.PLEASE LOOK AT THE WHOLE DEALERSHIP,NOT JUST SALES, THERE IS SERVICE,RETAIL AND WHOLESALE.IF CHRYSLER WANTS TO GROW IN THIS CITY IT WOULD BE A MISTAKE TO LOSE THIS LOCATION.THERE ARE THREE CHEVROLET,THREE FORD AND TWO OF EACH OF THE IMPORTS, BUT ONLY ONE CHRYSLER DEALER? IN A CITY THIS SIZE.ON SOUTH BLVD ALONE THERE IS A CHEVROLET,FORD,TOYOTA,HYUNDAI,KIA,HONDA,SATURN,AND MITSUBISHI DEALERS.WHAT WILL THE NEXT CAR OR TRUCK PURCHASE BE FOR ALL THOSE POTENTIAL CUSTOMERS THAT DRIVE THAT ROAD EVERYDAY?

chrysler1 Jul 18, 2009, 10:17 AM

1st of all.....every government in the WORLD supports their industries, so when "MY" tax dollars are used to help Chrysler (an American company with a strong past) It's well worth it! Nobody is complaining about the USLESS 700 BILLION dollars of MY tax dollars that have been WASTED to fund the usless IRAQ war, but your worried about a measly 15 billion dollars spent on Chrysler, which has contributed hundreds of Billions of dollars to the American econony over the last 85 years.....? Please get your priorities straight! As for the dealer closings. Chrysler has been notorious for having horrible dealers, that do not treat customers right! I'm a HUGE Chrysler supporter, but still have yet to find a decent dealer! Chrysler wonders why they lost so many sales, take a strong look at your dealers!!! Send in some bait cars to various dealers, and see how your dealers treat your customers.....NOT GOOD!! If Chrysler was smart they would keep only the dealers who have the highest Customer satisfaction scores, that builds customers, who keep you in business! Also people avoid dealers who don't treat them right, hence those dealers have lower sales!! Start making your dealers the best in the industry, then you'll start selling more cars! You've got great vehicles that are getting better and better, now get some people who actually know something about your vehicles & like your company to sell your products! When viewing a Viper, I once had a dodge salesman ask me if was interested in the 6 cylinder version or the 12 cylinder version!!!! You need better dealerships to sell your products!

Kathy Jul 18, 2009, 10:17 AM

Five Gold Star Dealerships? Was that just a joke to Chrysler? I have been a purchaser of jeeps for over 30 years and at one point we had three drivers in this house and 3 jeeps. (grand cherokee, cherokee, and wrangler) Each of the jeeps that we purchased were purchased thru Corwin Jeep in Hickory PA. At the time of our first purchase we tried at least 3 car dealerships that sold jeeps and the sales help at each one were totally inadequate in their knowledge or desire to sell us a jeep. Finally we met the Corwins and they met our every need and answered all of our questions. The second purchase we went back to the dealers in our area with the same results. So back to Corwin and they went out of their way to get us the jeep that we wanted. Since then we have just continued with them. I wrote to chrysler before the official closing of the dealers and the letter I received was a form letter that did not address my concerns. (not one of them) Basically I was told that my dealership was closing because it was too far to drive. You closed them because it was too far for people to drive!!!!!!! On the other hand they were one of the first Jeep dealerships in the country, they knew their product inside and out, their service department was extremely well orgainized and knowledgable, and they were the 5 gold star dealership. All gone because someone at Chrsyler looked at a map instead of the company history. Face it you moved too fast and you did not explore your choices or the results. The result, my car is being maintained by professional mechanics outside of Chrysler but with full documentation to maintain my warrenty, two I will not purchase a Chrysler product in the future.

debjay Jul 18, 2009, 1:17 PM

Mr. Grady, All of us who have or work at dealerships know your facts and figures are bogus. Chrysler allowed their local reps to pick and choose who stays and who goes. In our area there was a very populated area of 100 miles where all the dealers were closed down. The customer complaints have been horrendous and all customers stated they would never, never buy another Chrysler product. You either had to have an alternate agenda or else were completely stupid. I have spoke with terminated dealers across the country and not one was unprofitable or selling few cars. The truth will come out and the dealers will not stop pushing until the truth is out.

debjay Jul 18, 2009, 1:20 PM

By the way soft landing was non existent. We had Chysler "redistribute" 12 of our 41 cars left in inventory. We had to find buyers for 20 and we still have 5 that were taken off our lot two weeks ago and still we can not get them off our floor plan. Parts redistribution was worse. No help at all. One or two bids from "go forward" dealers for 35 cents on the dollar. Some soft landing. We hope Chrysler crashes and burns. And with sales numbers for July looking extremely dismall you appear to be heading that way.

lucasajackson Jul 18, 2009, 10:22 PM

I am on Mr. Grady's side. What he is saying makes sense. Realize that when you have a saturated market you end up having dealers competing against other dealers. Technically everyone within the Chrysler Group LLC dealer network should be working to achieve the same goal, but that is hard when you have internal competition going on. What was done is necessary. Also, for the record I think the government should stay out of the way on this decision. i belong to the mindset that business should run with very little government oversight. We are supposed to have a free market economy not a socialist one. I am in support of the decision that was made. I wish Chrysler Group LLC the best in it's efforts to turn the company around!

BigShot Jul 19, 2009, 8:50 PM

What we have here is a credibility problem. It is really hard to believe someone who has a hard time with the truth. I still have vehicles, parts and special tools, so your 100% statement is not accurate and you know it or you should know it. When is Chrysler going to "redistribute" them? Seems your new mega dealers don't have much faith in your abilities to move product or they would be very anxious and in need of product. I see you and Mr. Press have no problem stretching the facts all the way into lies.

JDT Jul 19, 2009, 8:50 PM

Email among Chrysler execs. "His dealerships perform fine-with good score cards" Phil Scroggin, North east Business Center Director Reply:" He's a belligerent, combative dealer who protests any new Jeep franchise in Provo, RI- Management made decision to cut him- he hhas not operated in good faith" IS THIS THE CRITEREA. THE HIGHEST VOLUME , MOST PRODUCTIVE, BEST DEALER IN RI GETS CUT FOR NO REASON OTHER THAN SPITE.

Z Jul 19, 2009, 8:50 PM

I would like to thank Chrysler for closing all local Dodge dealers in my area. Now my nearest dealer is about a half hours drive one way. Well done Chrysler. Thanks for the inconvenience.

Rejected Jul 19, 2009, 8:50 PM

You are right! the Government should have stayed out of this from the beginning. You must realize that this bankruotcy was a carefully engineered affair for long before the actual event. By Obama's Government intervention, we have been deprived of a right. We did nothing wrong, we were not a hinderence to the operation of Chrysler LLC. There are innuendos made that we were "nonperforming". There are more NEWCO Dealers nonperforming than the rejected. Mr. Grady needs to spend a few days in my "rejected" dealership to see the harm he has done to Chrysler, my employees and me.

dtc15312 Jul 19, 2009, 8:50 PM

Everyone knows, Mr. Grady, that statistics can be manipulated to say whatever the writer wants them to say. The tax dollars that are being poured into Chrysler are a waste of money to me. Chrysler lost many customers when it decided to close down the community dealships. As an owner of 3 Town and Country Minivans I have to say that the last one I purchased from Corwin Jeep will be the last Chrysler product I purchase. Knowing that I was helping to support the ecomony of a rural community in Washington County, PA meant a great deal to me. I did shop the larger dealerships in the Pittsburgh area and found that Corwin was the best dealership for my family and our needs. Take a look at the distance that customers now must drive to have vehicles serviced by Chrylser, it is too far and too out of the way. In closing, all I can say is that the whole attitude of the Chrysler management towards it's loyal dealerships has left a bad taste in my mouth! Once a Chrysler customer, now looking elsewhere for my next van.

BigShot Jul 19, 2009, 8:50 PM

What was done was NOT necessary. Close to 900 dealers went out of business on their own last year. THE MARKET WAS WORKING. Suggesting now that the governement stay out of this is trying to have it both ways. The role of the government is to represent the will of the people. Apparently the people are making their wishes known and the representatives are doing their jobs.

alm15220 Jul 21, 2009, 9:55 AM

Mr. Grady, I am involved in the automobile aftermerket business and Chryslers decision to cancel dealers has not only imoacted me, it imoactes the comunities, taxes and more importantly the delaer, employees and my family. This will have a trickle down effect. In this economy we need to focus on helping dealers continue to grow and prosper, not forcing them in some cases to go out of business and out quality people out of work, possibly causing families to lose their homes. Your dealers have supported you for decades, it now your reponsibility to support those dealers!

calguy Jul 21, 2009, 9:55 AM

I had to write a response to Mr. Grady for how he says that many high population areas are still covered. Well, as a Jeep owner for many years in the San Francisco Bay Area, I can say that the closing of dealerships here was terrible. Every dealer was closed on the peninsula except San Jose. Even then when testimony was given in congress about how at least 10 miles would separate dealers, this is not the case. San Jose has 2 dealers 8 miles apart while 2 dealers close to me ( one where I bought my Jeep and had service done there regularly ) are gone which is NOT convenient for me as a customer. That doesn't make sense. There should have only been one in San Jose and one other should have been kept on the peninsula. Luckily, my dealer is keeping it's support for repair so I will continue to go there. But, when it comes to buying a new Jeep in the future, I will have to pause and see if I do get one from San Jose that I can still have warranty service from the dealer I am very happy with. I will not go 20 miles to have a new car serviced. If Chrysler does not expand the locations for service then I may not get another Jeep no matter how happy I have been with my SUV. This area is very populated with Jeep customers so all the other owners seem to be in the same boat as I am. I only hope that some rethinking will be done from the powers that make dealer decisions and in areas like mine, some dealers will be reinstated. Otherwise, Chrysler's "Business" model is not going to be very effective for keeping good customers coming back to purchase new cars and we will be going somewhere else. Sales will keep declining with their thinking process. How do you do well in business?---Location,Location,Location!! Now, this is not the case here which is very sad from someone who has loved his Jeep.

Biggram97 Jul 21, 2009, 9:55 AM

Mr Grady, I must take umbrage with your latest "blog" I am a retired management employee (over 37 years) and for the first time I am really ashamed of Chrysler's underhanded antics. ON "Earth2Obama.org" Rep Ted Poe ((R-Tex) gave an excellent speech in which he asserted that any dealership that supported Republicans in the last Presidential Election, had their franchise terminated. If this is true, we need to have honest answers as to why this occurred. You also stated, that there was adequate dealerships to sell, service and sell Chrysler products. This is not true, as in southwestern Pennsylvania, there is a empty stretch of 35 miles with not dealers. My friend, Bo Corwin, of Corwin Chrysler/Jeep in Hickory, Pa., has been selling Chrysler products for many, many years. Chrysler Corp, or LLC or what ever we are now called, literally shafted him, and other dealers that I am very familiar with. This company was really hurt by the Germans, read the book "Taken for a Ride" which is factual and true. We need to get out from under the thumb of the socialists democrats, and the union fat cats, and get back into building automobiles. Walter P. Chrysler is spinning in his grave Posted 20 July by Biggram97

Chrysler Victim Jul 21, 2009, 9:55 AM

There is NO Chrysler representation in this market that has a "Planning Potential of 719" We were terminated after 64 years as a Dodge dealer and the C-P dealer after 35 years. Understand, we are both well capiotalized and have excellent facilities and prime locations. Our two sins were being dualed and low than desired MSR. Our market is heavily weighted toward imports and Toyota's penetration is the 4th highest in the country! Not only that, our planning potential was more than twice our MSR and those were the same guys determining who got terminated? I doubt the legislation will get us our franchise back, but we'll be fine. I just hate to see Peter Brady claim that they gave careful consideration to there decision and pretend that he knows what he is doing.

chrysler1 Jul 21, 2009, 8:57 PM

Is a dealer hasen't attempted to undertake all 3 brands, they should be Cut! If a dealer is selling a competitors brand they deserve to be Cut. If a dealer has been under minimum sales requirements for more years than over the requirement, then that says they don't take care of their customers so they have no repeat business, then they must be cut! Too many dealers undercut eachother, and have less capital to spend on promotion, new equipment, and upward mobility for their best employees! Take a look at Toyota, they have less dealers with more sales! This was a necessary step, I only hope Chrysler was even handed, and unbiased when they did the cutting!

JEEPOWNER1 Jul 25, 2009, 8:22 AM

Poor management at the upper levels and shear greed on the part of Chrysler and the union drove a once great company to bankruptcy. By eliminating hundreds of dealerships and jobs, Chrysler has literally hurt families and communities financially, inconvenienced past and future customers especially when they want to go shopping for a quality vehicle. This company should have seen the red flag waving when there was financial trouble brewing. Instead, Chrysler waited for the government and my hard-earned tax dollars to bail them out.

brokesalesman Jul 25, 2009, 8:22 AM

As a five year veteran Master certified salesperson at one of the retained dealerships, I would have to question some of the decisions made. In the fall, the dealerships were pressured to order additional inventory, in an effort to help Chrysler offload some of their excess vehicles. As I recall it was made very clear to the dealer principals, and I paraphrase, "if you assist us in this effort, it will be appreciated, If you do not participate, that will also be remembered". Maybe this is your way of payback? Regardless, with the reduction in sales the veterans are leaving for other employment that will allow them to support their families and maybe even see them every now and then. CSI scores will bottom out due to inexperienced salespeople with questionable ethics. Give us the inventory and promotions to make a living or shut the doors. Now that the UAW is driving the bus, I pray for us all.

sunderw1641 Jul 25, 2009, 8:22 AM

The new Chrysler should be the BMW of the USA. Chrysler should be the car company you see as Indulging in Performance Luxury for technological, sexy, luxury-minded drivers. Chrysler is well known for its innovation and styling and the company is also known for being the first to bring many new products to market. Chrysler should take the path as Audi did one steps at a time. People knew Audi was a luxury brand but its quality and reliability was low but look at them now. Their cars are head turners and they have built their luxury brand with quality and reliability that is now world renowned. Something that could help with Ads everyone that see it loves it and wish Chrysler was doing this on TV (Oricalc Crisis Division - Chrysler 300C http://www.youtube.com/watch?v=qRLbihK0U14) Here's a clip from YouTube that if you watch it you'll see Indulging in Performance Luxury for technological, sexy, luxury-minded drivers. Start from 0:30sec-1:43sec Shows an high-performance upscale 300 on the open US roads. 1:44sec- 2:12sec shows the beauty with graze with driving with total freedom. The last one for the best from 2:14sec- 3:52sec with no words shows sexy, technological, Performance Luxury for the STR-8 (Oricalc Crisis Division - Chrysler 300C http://www.youtube.com/watch?v=qRLbihK0U14) And Build the 200C on the shorter LX platform with RWD to save money and to make it standout from from its competitors and offer AWD with it. Chrysler should pull the same play book out Nissan did with the Altima and Made it better then the Maxima and look how sales took off from there.

JB Jul 25, 2009, 8:23 AM

With regards to your so called soft landing statements, they are way off base. New vehicle inventory was redistributed at a minimum of $350 per unit loss for the terminated dealer, much more if you factor in floorplan costs already paid. Parts redistribution is a joke with Chrysler merely providing phone numbers for other dealers who were offering 50 cents on the dollar. A single point Dodge dealership becomes overnight an independent used car dealer, this means loss of major bank financing for reatil used, no floorplan, immediate loss of all Chrysler Service Contract work for plans sold to our own customers, loss of DRAC vehicles and service loaners, Chrysler Financial calling all debts, Relicensing with the state, LIFO liabilities and on and on. WHAT ARE YOU TALKING ABOUT WITH A SOFT LANDING??? You state you had no obligation to help but felt it was the right thing to do??? Spend a day or two with me and my employees and I'll show you first hand what kind of a soft landing you gave me. Spin your numbers anyway you want, the bottomline is you screwed 789 dealers with no warning. GM was at least humane.

Chryslerwilllive Jul 25, 2009, 8:23 AM

Mr. Grady I am on your side. I understand what Chrysler had to do and it was to move forward from bankruptcy. Anyway all I hope is for Chrysler to stay alive and continue making great cars which they have been doing for years. And for all you ex-dealers leave Chrysler alone. Your dealership is never coming back.

DODGEFOREMAN Aug 3, 2009, 8:29 AM

Sad thing about it is that us remaining dealership technicians are dealing with difficulty getting parts and have had our warranty labor time cut once again. The levels that we are being paid to do warranty work is at a loss. To make matters worse it seems that the manufactuer is looking for even more money by performing a warranty audit. We are trying to save our end of the business but it seems there is no support from up above. I wonder if Mr. Grady would like to speak with one of my customers who has been wating one month for a seal package so I can overhaul her transmission and she can get back on the road? Don't worry though, according to Chrysler, I should have this transmission, out of the car, cleaned, inspected and overhauled, reinsalled in the car and road tested in less than 6 hours. AND TO MAKE MATTERS WORSE YOU ARE CUTTING OUR TRAINING? I think you better start building better cars if you want to cut down on warranty costs.

GT Aug 4, 2009, 12:49 PM

You just lost a loyal customer. After closing 10 dealership within a 50 mile radius of a major urban area (SF) I am now prepared to unload my two Dodge vehicles. The Dealership convenience is more important to me that Chrysler/Dodge making poor business decisions.
My regrets.

JB Nov 21, 2009, 8:58 AM

Months have past since the terminations, and it has left most of the public's concern. Out of the news and not on the general publics' mind. Chrysler is no offering the the remaining dealers still in business and others out of business 68 cents on the dollar on fast moving parts only (brake pads, oil filters etc...) for their wrong in exchange for no future claims against the new Chrysler, the old Chrysler or whatever. Yeah right, they stuck me with over $350,000 of Chrysler parts, that I've been selling off for peanuts on the dollar with absolutely no help from them since the termination and now they're offering to buy some back???? Is this to satisfy Jim Press's claim at the Congressional hearings that they werer buying back parts? WHICH WAS A LIE ..Pete Grady needs to fully understand what he did to the small businesses that made Chrysler what it was.

JB Nov 21, 2009, 8:58 AM

BTW..my name is Ram...My tank is full.. I'lll keep You informed how it goes.

backstabbed Nov 22, 2009, 6:43 PM

peter grady ,phil (duchebag) scoggin, eddie (asskisser)delotero . thanks for tearing down what was left of chrysler hope to see you all on the unemployment line i know i will do my best to get you there along with the other 787 .

JB Dec 4, 2009, 9:19 AM

Pete, now you're offering arbitration to terminated dealers??After 6 months of losing, losing, losing, losing, losing by the terminated dealers?? If we win the arbitration we can be offered to build a new store to your specs with our money in the area of your choice? No compensation for what your ERRONEOUS decisoin put us through financially and emotionally. No compensation for lost employees and their lost wages. Bottomline No Compensation for your greedy decison to terminate viable dealers for your own needs, which it seems has backfired on you. Less dealers means less sales. Less dealers that customers can service their vehicles at mean less sales in the long run. Less Sales equal Less Profits. You're the GENIUS that came up with this plan. Suck it up and RIGHT THIS WRONG.

JB Dec 4, 2009, 9:19 AM

BTW..my name is Ram..my tank has just been re-filled and I'm ready to fight on...Congress will learn of Chrysler's misleading offer of arbitration.

backstabbed Dec 6, 2009, 9:50 PM

on the formula to buy back parts at 68% of dealer net ,how much will you then sell them back to your current dealer net work for? how come chrysler will not reimburse these dealers dollar for dollar ? why can't chrysler old or new corp have a shred of decency? How do you expect your current dealer network to have any respect for your leadership? How can the general public be expected to buy from a corrupt company ?

Big Dog Jan 5, 2010, 10:20 AM

I Have purchased many Chrysler vehicles from a local Chrysler dealership who has recently been shut down by your corporation. What your company failed to realize is that myself and I am sure many others purchased Chrysler vehicles soley due to the fact thats what our dealerships who we developed relationships with sold. Not because they were Chryslers STUPID. Who would really want to aspire to drive a Chrysler. Your Company made a big mistake ! Peter Grady your explanation does not help any.

Big Dog Jan 6, 2010, 8:32 AM

JB Jan 21, 2010, 9:56 AM

Pete, I'm sure you check this blog as I do. How do you feel about the government mandated arbitration to re-instate dealers that were wrongfully terminated? Now Chrysler is adding to the criteria: The ability of a dealer to block a GENESIS point. I don't see that that in your explanation above....possible hidden agenda??? Could you emlighten us?