• Nov 23, 2009
Chrysler's dealers haven't yet entered the portion of the game wherein they can catch a break. As if the dearth of inventory and lack of new vehicles weren't enough, nearly 150 dealers haven't been able to finalize floorplan financing. Since Chrysler Financial has exited that business, GMAC stepped in, but dealers are having a hard time meeting its terms: 85 have been turned down flat, another 60 or so are still working on it.

In some cases GMAC has asked for more collateral; in at least one other case, GMAC is looking for the dealer to alter the lending structure of his mortgages (not floorplan), held by Chrysler Financial. The former Pentastar piggy bank, again accused of trying to wind down its operations, said it "continues to cooperate" with all involved. If the rumored number of dealers does fall, it would take Chrysler's planned closures up to nearly 1,000, after the 789 announced earlier this year.

[Source: Bloomberg | Image: Mark Ralston/Getty]


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  • 17 Comments
      • 5 Years Ago
      Make no mistake, it gives me no joy to see Chrysler go away. They have a long history of making some interesting cars, going back to the '60s muscle cars, the original Hemi, the Airflow cars, etc. Not to mention all the lost jobs.
      • 5 Years Ago
      Dang- maybe THEY should try the ebay way of selling. There won't be any dealers left and they'll have to...
      • 5 Years Ago
      Chrysler as well as the other Big 2, have had a bad luck that gas prices fluctuated so fast that there was no time to have any decent fuel-efficient product available. Then the economy tanked. Then fuel prices went down and so did the crazy demand for even used Geo Metros.

      Bottomline, the Big 3 were accustomed to a world without too much volatility and they were not ready when it came. Chrysler (under original management, under Daimler and under Cerberus) also was to blame for relying on large trucks and cars for sales without at least investing some of the profits in a hedge by producing decent small cars (Caliber, Compass....enough said...)
        • 5 Years Ago
        They were hemorrhaging money long before the economy tanked, I don't know why everyone has forgotten that. Union obligations alone would have finished off GM were it not for the bailout.
      • 5 Years Ago
      This is just one more reminder of just how tenuous Chrysler's position is right now. I'm now certain they will not survive as an intact company for very much longer. They have NOTHING to sell, except a couple of Jeeps and the RAM. I'm sorry the new Grand Cherokee is a vast improvement, but will never sell in any substantial numbers in a very crowded marketplace. My local dealer here in Hagerstown Maryland has only a few models on the lot and have completely closed the Jeep and Dodge showrooms, so I suspect there one of the 150 who can't get financing. I suspect even if they could the impact on the potential customers is too great to sustain the dealership.
      • 5 Years Ago
      Chrysler STILL has a LOT of dealers who shouldn't exist, One of the majors problems for Chrysler has been the POOR SALES and SERVICE PRACTICES dealers are performing. I'm not saying that dealers are the only ones responsible for this, Chrysler continues to play a BIG role here, because they are still have working for them NASTY people !! I couldn't believe it, but many took an early retirment, took Chrysler's money, BUT THEY ARE BACK WORKING with Chrysler, many of them never even deserved a cent, they are evil. they just go to the office every morning, wait till 12 noon then they take their famous brake, they go to the parking lot, and they start drinking, then comes lunch, they are already drunk and sometimes they don't go back to the office, or if they go they do nothing there. When is Chrysler going to listen? when? There are so many talent,and young people looking for a good job, but they can't work for Chrysler, because old executives are in FULL control of that job, they will simply give a position to a friend or somebody who will gives them money. Chrysler NEEDS to start cleaning the house from top to buttom.
        • 5 Years Ago
        For # 12:
        I am Italian and I know well Fiat from inside.
        When Marchionne stepped in as CEO of Fiat Group Autobiles, he declared that nobody among Fiat workers would be dismissed. He was not completely sincere, as he fired almost 500 executives of 700, not immediately but within a couple of years, thus shortened the command chain and improved greatly internal efficiency and reaction rate. This occurred in all Fiat branches apart from Ferrari (but, recently, he visited Maranello several times...) and, probably, it was the main ingredient of Marchionne's recipe for Fiat resurrection.
        If things in Chrysler are going as you describe, those executives and their 'clientes' should be a little scared...
      • 5 Years Ago
      If they can hold out until the new very economical cars come through the turnaround should happen very quickly. By that time fuel prices should be rocketing irreversibly upwards again and the ONLY criterion buyers will be interested in will be economy. They'll have a hybrid by then too I reckon.
      • 5 Years Ago
      this is one way for GM to suppress Fiat. Just "business"
      • 5 Years Ago
      For # 12:
      I am Italian and I know well Fiat from inside.
      When Marchionne stepped in as CEO of Fiat Group Autobiles, he declared that nobody among Fiat workers would be dismissed. He was not completely sincere, as he fired almost 500 executives of 700, not immediately but within a couple of years, thus shortened the command chain and improved greatly internal efficiency and reaction rate. This occurred in all Fiat branches apart from Ferrari (but, recently, he visited Maranello several times...) and, probably, it was the main ingredient of Marchionne's recipe for Fiat resurrection.
      If things in Chrysler are going as you describe, those executives and their 'clientes' should be a little scared...
      • 5 Years Ago
      Could not happen to a better company.
      The corporation, its vehicles and its dealers are utter garbage.
      They should be closed down.
      I support GM and Ford, but Chrysler is a crap company run by crap people.
      Close its doors already.
        • 5 Years Ago
        Chrysler is not responsible for the mess it's in. It was doing great and then Daimler took it apart. Cerberus stepped in and didn't put any money into them. Now FIAT is at least sharing technology and platforms with them (but still no money). But Chrysler didn't do this to themselves. GM and Ford on the other hand, are totally responsible for the mess they are in. No one raided their corporate account and pushed their executives out.
      • 5 Years Ago
      So, who's in on the "Chrysler Files Chapter 7" pool?
        • 5 Years Ago
        Francis, I give them three years, tops.
        • 5 Years Ago
        duke@

        I am Ram. And my cash tank is empty.
        • 5 Years Ago
        At the rate things are going, it will be a miracle if Chrysler survives to 2011.

        No new product and industry-low quality when the competition (Ford & GM) have literally passed them by just puts them in a ever-tightening downward spiral.
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