While more and more information keep coming about Chrysler closing 789 dealerships in the United States by June 9, 2009, it looks like Canada will be spared and retain all three corporate brands -- Chrysler, Jeep and Dodge.
According to a Chrysler Canada spokesman, Daniel Labre, no widespread closing plan is on the table north of the border. "Rather, we opted to reorganize our dealer network. I can't tell you for sure that not a single dealership will shut down in the upcoming weeks or months, but should that happen, it won't have anything to do with a global, structured plan," he said.
Actually, according to Chrysler representatives, the strategy over here is more about bringing the various dealerships up to date and reuniting all three brands under one roof. "For a couple of years now, our dealers have been modernizing their facilities and bringing the brands together," claims Mr. Labre. "That said, each market operates independently; we're able to know if one or several dealerships are required in a specific area. In most cases, we retain all our businesses."
He then adds: "Obviously, over the long haul, we believe our present actions will allow for the elimination of many twin models, like the Avenger/Sebring. This should also facilitate the eventual arrival of Fiat vehicles inside our very own showrooms."
A decision to force closings is therefore not in Chrysler's plan, at least for now. "History shows that if you close a dealership in a given area, the number of vehicles on sale will still be the same but a fraction of the customers won't come back. We don't want to play this card for the time being," insists Mr. Labre.
What about finance?
On the other hand, there's a major restructuring going on at Chrysler with regard to financial operations. The manufacturer recently announced a new partnership with General Motors Acceptance Corporation (GMAC) for vehicle financing.
In fact, GMAC has already contacted most dealers in order to establish an individual partnership based on credit limits granted to each one. "A few days ago, GMAC authorized a minimum line of credit for all dealers, although the individual analysis is still in progress. Right now, everything appears to be on track and dealers look relieved," says Mr. Labre.
According to a Chrysler Canada spokesman, Daniel Labre, no widespread closing plan is on the table north of the border. "Rather, we opted to reorganize our dealer network. I can't tell you for sure that not a single dealership will shut down in the upcoming weeks or months, but should that happen, it won't have anything to do with a global, structured plan," he said.
Actually, according to Chrysler representatives, the strategy over here is more about bringing the various dealerships up to date and reuniting all three brands under one roof. "For a couple of years now, our dealers have been modernizing their facilities and bringing the brands together," claims Mr. Labre. "That said, each market operates independently; we're able to know if one or several dealerships are required in a specific area. In most cases, we retain all our businesses."
He then adds: "Obviously, over the long haul, we believe our present actions will allow for the elimination of many twin models, like the Avenger/Sebring. This should also facilitate the eventual arrival of Fiat vehicles inside our very own showrooms."
A decision to force closings is therefore not in Chrysler's plan, at least for now. "History shows that if you close a dealership in a given area, the number of vehicles on sale will still be the same but a fraction of the customers won't come back. We don't want to play this card for the time being," insists Mr. Labre.
What about finance?
On the other hand, there's a major restructuring going on at Chrysler with regard to financial operations. The manufacturer recently announced a new partnership with General Motors Acceptance Corporation (GMAC) for vehicle financing.
In fact, GMAC has already contacted most dealers in order to establish an individual partnership based on credit limits granted to each one. "A few days ago, GMAC authorized a minimum line of credit for all dealers, although the individual analysis is still in progress. Right now, everything appears to be on track and dealers look relieved," says Mr. Labre.