Want To Be A Chrysler Dealer?

Chrysler is sizzling

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Last week, bankrupt Chrysler announced that it would sever ties with 789 dealers. The news was delivered by UPS. None too elegant, eh. Kind of like getting smacked in the head with a frying pan.

According to a story that appeared today in Automotive News, these closures have opened some retail markets. Chrysler President Jim Press noted that the closings create "a number of open point opportunities," in those markets where Chrysler wants to be, but hasn't had strong dealers.

Any wannabe Chrysler dealer should understand what faces the manufacturer. First, there is that little matter of corporate bankruptcy. If the company pulls out, the entity will be run (in part) by Italians and the UAW. While the Italians and the unions have often had a close working relationship, their cooperative efforts have often been on dealings that were a bit different that running a major multi-national manufacturing company. (Production and distribution of illicit drugs don't count for much here.)

Furthermore, short term, those canned dealers must figure out what to do with the inventory they have ... the fire sales could be amazing ... but what is a base Caliber really worth these days? And as much as we'd like to see $15,000 Challenger R/Ts, it's probably not going to happen.

Then there's the reality of first dealing with Fiat, and waiting their products to arrive. While there is a dearth of new products for the next 18 months, the future looks pretty good (see our story on what Chrysler's line could look like in 2012).

We'll keep you up to date on other Chrysler happenings and product news as it breaks.