Tuesday, May 19th, 2009
The Chrysler turmoil continues as the Committee of Chrysler affected dealers aim to protest the cancellation of 789 dealer franchise agreements. Apparently a lot of these dealers are seeking the US Bankruptcy Court to delay hearings until the amicable settlement on asset sales has been reached.
“Chrysler’s proposed asset sale and request for immediate termination of dealer franchises will destroy several hundred independent businesses, ruin the livelihoods of their owners, cause the loss of thousands of jobs and precipitate inevitable personal and business bankruptcies flowing from the closing of the affected dealers,”
The move may be a big blow for Chrysler’s transition towards the “New Chrysler” with Fiat/UAW presumably assuming control over the troubled carmakers operations. Then again, this was to be expected as a lot of loose ends are bound to come out from this Chrysler debacle.
(Source) Press
Tags:
business bankruptcies,
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Chrysler,
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UAW,
us bankruptcy court
Posted in Chrysler | Comments
Friday, May 15th, 2009
Chrysler, just like General Motors, is cutting down the numbers and AutoNation has announced that 7 of their dealers will be hit by the dealer closure. As part of the dealer consolidation plan filed by Chrysler today in its bankruptcy, approximately 789 Chrysler dealerships will be closed nationwide.
The AutoNation stores that will be closed by the consolidation plan represented only 1% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.
Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe Chrysler’s consolidation plan is a difficult but positive step forward for Chrysler and the automotive retail industry. Dealer consolidation is a necessary measure in today’s automotive industry and will strengthen America’s dealer network and improve dealer profitability over the long term.”
Mr. Jackson commented further, “The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”
(Source) Press
Tags:
automotive industry,
autonation,
Bankruptcy,
chief executive officer,
Chrysler,
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Closure,
consolidation plan,
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franchises,
General Motors,
necessary measure,
operating income,
profitability,
retail industry,
retail landscape,
term strategy,
time charges
Posted in Business, Cars, Chrysler, Industry | Comments
Friday, May 15th, 2009
General Motors will be closing down about 1,000 dealerships and though they have yet to be named, AutioNation has revealed that six of their dealerships will be affected by this unfortunate turn. Autonation today announced that General Motors notified AutoNation that six of its dealerships were identified for potential closing by GM.
The notification is part of GM’s communication today to approximately 1,100 dealers that GM does not expect to continue as GM dealerships past October 2010. The AutoNation stores potentially impacted by the consolidation plan represent 0% of AutoNation’s 2008 operating income. AutoNation does not believe that any one-time charges that may be associated with these actions will be material to its continuing operations or debt covenants.
Commenting on the consolidation plan, Mike Jackson, Chairman and Chief Executive Officer, said, “We believe GM’s consolidation plan is a difficult but positive step that will strengthen America’s dealer network and improve dealer profitability over the long term. The consolidation plan is consistent with AutoNation’s long-term strategy that we implemented in 2000 to consolidate domestic dealerships and realign our brand mix more towards import and premium luxury franchises. With our financial and operational strength and diversified brand mix, we are well-positioned to succeed in the rapidly changing automotive retail landscape.”
(Source) Press
Tags:
autonation,
axe,
chief executive officer,
consolidation plan,
debt covenants,
franchises,
General Motors,
GM,
gm dealership,
gm dealerships,
operating income,
profitability,
retail landscape,
term strategy,
time charges
Posted in Business, GM, Industry | Comments