why did chryslers and gm close dealer ships? i know why they closed plants!?

And how exactly did they pick and choose which dealerships to close?

I haven't been able to get a good answer to your question and I have wondered the same thing. I would think that any manufacturer would want all of the retail outlets for their products that they could possibly muster.

Somehow, obviously, it must be an expense for the manufacturer to have dealerships but I don't understand why.
 
They had way too many dealerships. In large cities like Detroit if you didn't like 1 dealer there was probably 10 more within a 10 mile radius. With so many they weren't profitable and would have to get in sales wars with other dealers which is good for consumers because you know its gonna be cheap but bad for dealers because they make nothing on the sales.

They typically closed the ones with lowest sales.

You aren't making money when you are competing against yourself. Its just like gas stations having gas wars. Sure they might get more business but they are making less money or no money on every sale.
 
Back
Top