Chrysler dealership closing criteria?

I was enjoying some lunch today (grilled cheese and deli chicken sandwich) and reading my daily Omaha World Herald and found an interesting article regarding the recently released dealership closings for Chrysler.  I have been a supporter of doing a pretty extensive makeover with GM and Chrysler for some time, and I agreed that the number of dealerships needed to be reduced.  I hadn't seen a criteria for closing dealerships, but I had assumed it would be based on location and profit.  I figured they would do a big cut of multiple dealerships in the same town first, and then find the ones that have bad customer service or bad sales records.  I had hoped that there would also be some human eyes to look at special situations other than numbers, but it looks as though that was of course, not the case.

This article, which is a shorter version of the print article, talks about the Kobza Motors dealership in David City, NE.  David City has 1 dealership in town of around 2500 people.  From the article, it sounds like a good portion of the people in town use the dealership.  From looking at the google map and searching on "Chrysler" the nearest dealership is in Columbus, NE, which is 25 miles away.  Are those dealerships poaching each other's business?  I would bet not.  Are they profitable businesses?  I don't have their numbers, but if they have been able to survive in a small town for decades, I would think they do plenty of business.  If the dealership is not "stealing" sales away from other dealerships, and they are able to stay in business, why would you tell them to stop selling cars? 

If I had to guess, I would say they don't sell (or buy from Chrysler), whatever the decided minimum amount of cars is.  So what?  What difference does that make?  How else are you going to get your vehicles into these people's hands?  If we are talking about the middle of Nebraska, I would say they sell a lot of trucks, which is the bigger profit margin vehicle. 

So you have a dealership in a small town, good public relations, been there for decades, low cost (small number of employees, land/rent is probably cheap), no competition from any other dealership, and sells mostly high margin trucks.  Yeah, let's get that closed. 

And we continue to wonder why GM and Chrysler have so much trouble....

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