Despite the Chrysler BK - Would you buy a CDJ franchise?

Jared Hamilton
Chrysler is in BK and they announced they are moving to cut just shy of 800 dealers out of their franchise agreements. Would you buy a Chrysler Dodge Jeep store in today's climate? I would, (naturally it would have to be one of the points NOT listed to lose the franchise agreement) but I believe they will emerge from the BK and over time consumer confidence will strengthen. Jeep can be a super strong niche brand again, Dodge has always been a great truck line to have and if Chrysler gets Fiat cars it will be "game on" there too. Many of those franchises are making money today and will be great investments over time. Times are tough, values are low... now is the time to be buying. What do you think?
Mark Dubis
Jared, very interesting question. The bigger question is, "If you are not in the car business would you buy ANY franchise at this point?" No one is immune from the issues plaguing dealers today. One of the biggest issues is the relationship between the OEMs and the dealers. It is a very adversarial relationship and neither party has much respect for, or listens to the other. As an independent business man, a dealership should not be asked to spend millions on a new showroom and have absolutely no guarantees their OEM will be in business or offering good quality products for many years to come. OEMs need to develop a holistic attitude and become more retailer inclusive in how they do business going forward. In my mind I think the retail model will have to evolve so that the franchise agreements are more fair to both parties and that dealers have more flexibility in having multiple franchises under one roof.

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