Home > Everyone Speak Up., Financial Folder., Just for Discussion. > Eliminating Dealerships, and Why?

Eliminating Dealerships, and Why?

Almost 800 Chrysler and 1100 GM dealers, will have to become creative or go out of business by October of 2010. Maybe sell some used cars or another brand. Maybe branch out into more service or create Auto Parks, that’s what I’d do, because I sure wouldn’t go under. More about that idea in the next post for all of those unfortunate dealers.

They will be getting the pink slips from the manufacturers. Supply and demand rule how many cars will be sold at any given time, so why give them pink slips. Why not just let them sell what they can or downsize  or fold on their own, if they can’t make it. I don’t get how putting them all out of business, will streamline and help the manufacturers, when the dealerships are privately owned in the first place. What is it I am missing?

For now many will just turn out the lights and call it quits. Sending their employees packing to the unemployment lines of America, where they will become more of a burden on an already ailing economy, and that can’t be good. Things will eventually get better and there will be a larger population also. Sales of everything will go up and more and more people will again be added on, to sell the items.

Dealerships will always strive to sell the most they can from each location in the future, before adding others again. They will strive to remain lean and green this time around. But more will definitely be needed again, so why cut them now? Let them sink or swim at their own pace and we won’t loose as many, or have to replace as many later.

With these cuts now, we will have thousands of people from dealers, who will only add to the statistics before things get better.  Things will only turn around when companies realize they have to accept the profits for the number of employees they do have and not lay more off. That will become the turning point where unemployment numbers start to decline steadily and America gets going again.

Less profits and no more workforce cuts to keep profits up, is what is needed to change things. I feel they are wrong to cut their privately owned sales teams by this many and send them to the unemployment line. This can’t be good for anyone and will only hurt the economy more, just when we need these kind of cuts less, so that things will start to turn around.

What do you think about the dealership cuts?


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