another dealership closure

[Ridge K.]

I just drove by United Ford, in Tulsa, Oklahoma, and workers with cranes are taking all the signs down. The entries into the lot are chained and locked. On the local news, it has been announced that the inventory will be dispersed to other Ford dealers in the area, and hopes are that the 65 employees can also find jobs with the other Ford dealers.
Roger Penske is the owner.

[Mike M.]

Re: another dealership closure

roger's mom didn't rasie no fools.mike

[John D.]

Re: another dealership closure

Many GM dealers are facing the decison on whether to recapitalize their business (put more money in) or throw in the towel as a condition to continue to finance their inventory (floorplan) with GMAC.

It's a tough decision for these dealers, many will fold in the next 6-12 months.

jd

[Dick W.]

Re: another dealership closure

According to an editorial in Wall Street Journal the prediction is that 2,000 dealers will fold in 2008 and 2009.

In a 30 mile radius of here two GM, one Ford, and one Chrysler have folded in the last 12 months. There are at least 4 more on life support and will probably fold in the next 6 months.

[Jaime G.]

Re: another dealership closure

As sad as it seems and its terrible for the employees of these dealerships, GM has too many dealerships for the number of cars they sell. Leaner and meaner is the future. Their restructuring plan will include this contraction of dealerships across the country.

[Erik S.]

Re: another dealership closure

As sad as it seems and its terrible for the employees of these dealerships, GM has too many dealerships for the number of cars they sell. Leaner and meaner is the future. Their restructuring plan will include this contraction of dealerships across the country.

Not only across your country - across the globe. It was announced that GM will party close some Netherlands dealerships

[Lawrence G.]

Re: another dealership closure

The Chevy dealership near me has a lot jamb packed with cars, trucks, SUV's....talk is that if things don't improve by March, they'll be closing their doors.

[Bill M.]

Re: another dealership closure

Guys. Just keep buying those ever dependable jap cars. Hope we never have another world war there will be no American industries left to propel us.

[Lawrence G.]

Re: another dealership closure

Who says "the American's can't make a good car or truck?"

My Toyota Tacoma was produced by American workers in Cali..in the USA....and its a damn good truck

[William B.]

Re: another dealership closure

Toyota tachoma trucks are quietely being bought back by Toyota, because their frames are rusting out and are UNSAFE TO DRIVE!! GOOGLE "toyota tachoma truck rust"

[Lawrence G.]

Re: another dealership closure

Toyota tachoma trucks are quietely being bought back by Toyota, because their frames are rusting out and are UNSAFE TO DRIVE!! GOOGLE "toyota tachoma truck rust"

95-00. Toyota is doing a 150% buyback on the trucks with bad frames.
Would any of the big 3 being doing a buy back.....I doubt it

This could turn into a pissing match real fast...so, I'll drop it here
Save the wave

[Steven B.]

Re: another dealership closure

'Small town (3000+) Chevy dealership north of me about 7 miles is reported to lose licensing when/if sold. In my opinion since the dealer does no regional advertising, promotion and minimal parts business with a facility that looks as if it should be bull dozed the lack of success is a direct result of the lack of knowing how to do business and the foresight to learn. I really hate to see alot of them go and so many lose their jobs. When the economy at large (World wide) is on sand it is no surprise all businesses will be impacted.

[Donald B.]

Re: another dealership closure

I don't understand how GM, Ford, et al. can force dealers to close. I also don't understand why GM would be DIRECTLY impacted by the number of dealers - you would almost think - the more the better.

Also, I thought there was some law that prevented GM, Ford ... from selling directly to the public, hence the need for dealers.

Can anyone explain?

[Anthony M.]

Re: another dealership closure

I don't understand how GM, Ford, et al. can force dealers to close. I also don't understand why GM would be DIRECTLY impacted by the number of dealers - you would almost think - the more the better.

Also, I thought there was some law that prevented GM, Ford ... from selling directly to the public, hence the need for dealers.

Can anyone explain?

You are right it is very difficult for GM to force a dealer to close. The impact on GM comes from the fact that as the number of dealers stays the same and sale decline it assures that dealers do not make sufficent profits to modernize their facilities, advertise their products, and run promotions to increase sales.

This economy will drasticly reduce the number of dealers as many will choose to walk away from the franchise rather than recapitalize. Others will be unable to secure the necessary financing to continue their business. In many cases the real estate is worth more than the franchise and they will recover some of their investment but in a lot of cases the dealers will lose everything, employees will be on the umemployment rolls, competition will be reduced and it will be a lose, lose, for everyone.

If George W. continues to waffle it might cause GM to declare BK which will be a death blow to the company and I am afraid our economy. Without a manufacturing base our economy as well as our security will be in dire jeapordy.

The good news is if the stop manufacturing Corvettes our cars could increase in value.

[Jim T.]

Re: another dealership closure

Only announcement of a dealer closing in the immediate area is the MAZDA dealership.