Dealerships Closing

[whoaru99]

Spent 20 hours in a car over the last few days so had ample opportunity to listen to talk radio of various flavors.

Some interesting discussions going on about what factors were involved in the Chrysler dealership closings.

According to the programs I listened to (don't recall the hosts) it seems many of them that got the axe were good dealers.

Why would a company axe dealers who were meeting or exceeding their targets, yet leave others who did not? Very strange.

Perhaps it's easier to "work with" dealers who aren't doing so well?

[noonereal]

Originally Posted by whoaru99

Why would a company axe dealers who were meeting or exceeding their targets, yet leave others who did not? Very strange.

I cannot speak to the decision making process in regards to this issue but I can share my business experience.
More than once in my life I have had to shut down accounts that were meeting our goals. This has always been the result of management changing it's approach to distribution. I would think bankruptcy would cause a major change in approach.
That being said, I would be curious to learn how and why the dealerships that were closed we chosen.
I would guess there is a strategy involved, right or wrong.