Dealer Bailout: Chrysler to redistribute all new inventory
After the suggestion of Congressional hearings on the matter, Chrysler's Jim Press assured Senator Kay Bailey Hutchison (R-TX) that Chrysler dealers with leftover inventory after June 9 would "receive a fair and equitable value." It appears that Chrysler is making good on that promise.
The company's head of sales, Steven Landry, outlined the measures being taken to relieve shuttered dealers of their wares and remunerate them for it. Of the 42,000 cars held by the 780 dealers whose franchises were nixed, 26,000 of them have been sold. The rest, save for 220 cars, have been assigned to be moved to dealers that are still in business. Those last 220 cars are in the possession of dealers who haven't yet agreed to Chrysler's plan, but the cars already have new dealer homes waiting if and when things are agreed.
As for payment, after the cars arrive at their redistribution point, the new dealer's finance company will pay off the old dealer's finance company for an inventory acquired, save for $350 in destination fees. All else, according to Landry, including holdback and advertising funds, will be repaid. There is at least a little good news to start the week...
[Source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]
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Reader Comments (Page 1 of 1)
9600baud 5:31PM (6/08/2009)
not that good news, ruins your chances of getting a decent deal on one of those things
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mr.ed 6:09PM (6/08/2009)
My neighbor claims to have "stolen" a base-line Challenger in a dead dark gray color. Quite ordinary looking, cheap details in interior, big smile on his face.
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Frank 6:08PM (6/08/2009)
Seems like Chrysler is trying to make the best of a bad situation. I hope they can sell the inventory down and get the factories going again. Now the Supreme Court may get involved.
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KT 6:50PM (6/08/2009)
They *got* involved this afternoon and delayed the sale. If this drags on, Fiat can walk on the deal and it's Ch7 for Chrysler. It was just going way to easy, so you knew something like this would happen.
I wouldn't get my hopes up. GM's much more complicated restructure will hit a snag or two like this.
Thinking these two companies can get a rinse in less than two months is a pipe dream.
mcredelle 6:23PM (6/08/2009)
Doesn't this kind of screw over the dealers that started offering and selling cars for 10k off because they were under the impression Chrysler wasn't going to help?
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brn 10:29AM (6/09/2009)
I think that was the plan all along. Let the dealers think they're not going to buy the inventory back. That way, they fire sale them and clear out inventory. Later on, buy back what's left and redistribute. I predicted this. They're smarter than I am, so I suspect they planned this.
Eric Liberatore 6:39PM (6/08/2009)
The "fair and equitable value" of those shameful Jeep monstrosities in the picture are posted in their windshields!
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Erik 8:30PM (6/08/2009)
HAaaaa! Lol. good one!
Dave 10:51PM (6/08/2009)
The designer(s) of the Jeep Compass should be shot. Then incinerated.
Chris 12:54PM (6/09/2009)
the compass designers and the compass engineers actually should be spared. the Managers involved in the creation of the end product (make the interior cheaper, we don't have the money for that, no we can't put real jeep AWD into them even IF we can cheaply get it from the Patroit, yes we have to use the CVT from the caliber, etc)
THOSE guys need to be beaten to within an inch of their life....every month or so, until the same time the thing has been in development and on the market has elapsed.
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