The One/Darin-
Actually "The One" has been coopted by our President. I can't write that as a greeting without seeing his ears and smile.
In any event, this refers to your post above in which you said...
"Jim the cost savings is not in infrastructure to support the dealers.
It is:
Reduced inventories at the wholesale level.
Reduced inventories at the retail level.
Increased perceptive value in the product.
Reduced incentives.
Reduced rebates.
Better retail process control."
One at a time:
"Reduced inventories at the wholesale level."
What we see is many consolidations that look like a simple consolidation of the three Chrysler brands under one rooftop. The dealers slated for termination the loser, the survivor the winner. I'm not sure how that will reduce wholesale inventories at the wholesalel level. If they do reduce a dealer point covering all three bands that might apply. But with our review of the list those are limited. Most look like consolidations with veryone ending up under one roof.
"Reduced inventories at the retail level."
Same argument- if the bulk of the closures only result in Chrysler brand consolidations then the reduction in retail inventories appear to be minimal.
"Increased perceptive value in the product."
I'm not sure what that means. Larger more-capitalized dealers are better for everyone, except the guy who loses. So I can buy this as an long-term advantage. However, it will not pay in the short-run as customers are abandoned and lost to other dealers and makes. Some customers won't like the guy down the street.
"Reduced incentives.
Reduced rebates."
But together these are functionally the same. I don't see it. Why?
"Better retail process control."
Again, I'm not sure what you are getting at. Will there be less competition? Only if our assumption that the majority of the announced Chrysler closings have more to do with aligning the brands under one roof is wrong. If the Jeep dealership is just moving down the street to the Chrysler Dodge store, then we don't see any difference in the retail process or its control - but again, I'm not sure what you mean.
[This message has been edited by jimmuntz (edited 05-23-2009).]
[This message has been edited by jimmuntz (edited 05-25-2009).]