Chrysler automobile to reduce dealership

Chrysler, once a prestigious automobile brand, was reduced closed to bankruptcy. Should the alliance with Fiat fails, Chrysler will be on its way to extinction.

But why reduce the dealerships? When more dealers selling Chrysler automobile will translate to more exposure, which in return translates to better sales?In an ideal world, the theory above works like a charm. but not now, when every single cent counts for Chrysler and when we aint in an ideal world.

By having more dealers, Chrysler will have to produce the vehicles first and display them at their dealers' shop. And usually for businesses, "terms" or "credits" are common. Thus the dealers will not pay upfront beforehand and Chrysler will have to pay for the initial production fees.

With this current financial crunch and almost no banks wanting to loan money to consumers to purchase, automobile sales are rare.In this financial hardship, we, consumers will prefer to save the money for survive, rather than spending on a big piece of metal on wheels.

By reducing their dealerships, they will not have to pre-fork out the amount to produce the automobiles and could save substantially. With reduce production, that translates to lesser manpower needed, which translate to cost savings!

However, closing of dealerships will require approval from the Court since they have filed for bankruptcy.

In Singapore, Chrysler automobile are still pretty rare on the road, except for the recent sprouts of Chrysler taxi or (cab)


Of cos, premium brand comes at a premium price. a hitch will cost you S$5, before any surcharges, and the meter increases at a rate of around $0.30 per 330m travelled. Which is pretty pricey in Singapore!

Hope that Chrysler automobile and the rest will be able to survive this financial crunch after reducing their dealerships, should it falls, i believe the US will recover at a slower pace which will further prolong this recession!