
UPDATE 3/27/12: I missed two very important elements in this post. The first being, even though Chrysler was allowed to shut dealerships down and take their franchise points away, they still expected dealers to pay for ALL monies outstanding to Chrysler AND for special tools or equipment Chrysler ships to dealers whether they want them or not. I've seen some dealer invoices where dealers were asked to pay in excess of $100,000 to Chrysler, even though they were closed down! I ask you on this first one, if a dealership is shut down, how are they supposed to pay these bills with no business coming in?
Secondly, Any dealership vendors, banks, landlords or other commitments were not considered in the closures--nor was any help provided by Chrysler so in the end, again with no business coming in, most dealers were forced to file bankruptcy, ruining their credit scores, their lives and careers as well as the lives of their employees. Back when Chrysler still had Plymouth, they did indeed reimburse dealers when that franchise was deleted. Large dealers often received compensation from the lack of a Plymouth franchise in excess of $200,000! Many dealers could have benefited from the same help if dealers were offered some sort of compensation upon shutdown to avoid all of this. But again, we dealers were only considered useless assets!
This past Sunday on the TV show 60 Minutes (CBS), Steve Kroft reported on the recovery of Chrysler
after it almost fell to the wayside in 2009 in a story, “Resurrecting Chrysler.”
If you know me, I’m fond of calling Barack Obama the Auto Czar.
He appointed a team of flunkies, including Steve Rattner who was head of Obama’s
Auto Task Force to “fix” the auto industry. Rattner was also interviewed in the 60 Minutes story.
It’s the kind of rah, rah story that frankly pisses me off!
First off, I having nothing against Sergio Marchionne the
CEO of Fiat/Chrysler who came to their rescue perhaps a little too late and
after President Obama’s Auto Task Force allowed and even recommended Chrysler
rid itself of some “useless assets.”
If news reporter Steve Kroft thinks the Chrysler/Fiat deal
was “an American style success story” he needs to dig a little deeper.
Kroft does point out “much of the credit (for saving
Chrysler) goes to the U.S. taxpayers, and to Chrysler workers who accepted wage
and benefit cuts.” Thanks for that Steve—it’s nice to remind us of the truth!
It’s a touching story (link below) but unfortunately, it
only talks about Chrysler at the corporate level, not their franchises, their
dealerships or the owners and employees of those dealerships.
In April of 2009, Chrysler was allowed to rid itself of useless
assets and took away franchise points of 789 dealerships – approximately 25
percent of its dealers in total, according to Cars.com. You can read a 40-page list of those closed
here; delivered promptly to the public by
Automotive News in 2009.
The more I watched the report, as a former Chrysler dealer,
the madder I got. I had heard the show
would be reporting on Chrysler’s survival on a promo spot on CBS and was
anxious to hear if at least now, someone, anyone would talk about these closed
dealerships, their owners and their
employees. To my dismay, the story missed the mark here—none of the 789 closed
dealerships were mentioned.
I found a story in Car Dealer Insider, an automotive dealer
management publication, offered by Nancy Phillips (May 2009): “Dealer Suicide:
Not an Act of Cowardice”. It’s more of a
how-to story on how to deal with suicidal thoughts for dealers whose stores
were closed, but it does mention one tiny tidbit no one ever talks about. The
tidbit: “Car Dealer Insider is aware of several franchised dealers who took their
own lives in recent months.”
This is the problem I have. If you search for suicide
statistics on Chrysler closed dealerships—you can’t find any. Even though Car
Dealer Insider says they are “aware of several franchised dealers” that did
indeed commit suicide.
It’s these suicides and financial ruin everyone fears
discussing and I wonder why? Why, when we discuss Chrysler/Fiat do we only talk
about how successful it is now at the corporate level? Why dismiss those who
are the meat and potatoes of every auto manufacturer—the dealerships that sell
and repair their vehicles and deal
with customers when recalls, breakdowns or technical issues occur?
Consumers can’t talk to Chrysler engineers. Sure they can
call Customer Service but the folks answering these calls simply refer the
complaints back to the selling dealership to “fix” the problem—it’s never
handled at the corporate level—ever.
I know this because beyond being a former Chrysler dealer,
my husband also worked for the Chrysler Corporation before we bought our
franchise. I know what happens at the corporate level. I know the inside stuff
other’s don’t know.
You see, car dealerships—even the big ones, do have an
atmosphere of “family.” Most dealers became successful via dedication to their
organization, vision and mission. They are proud folks who think of their
employees as an extension of themselves. If they do have to lay-off an
employee, they don’t just think about the employee, but also their spouse and
children.
When Chrysler was allowed to rid itself of 789 useless
assets, this is why so many dealers became troubled, filed for bankruptcy and
even the unthinkable—committed suicide—yet no one ever talks about it.
I like to tell people I’m a useless asset according to Steve
Rattner and Obama’s Auto Task Force. Some think it’s a joke when I tout this
where others don’t even know what I mean.
When the 60 Minutes’
story was finished I looked over to my husband who had watched the piece with
me. “I’ll have to write about that!” I told him.
In the end, all I want is for a story about Chrysler’s fall
and rise to include the 789 useless assets—even mention a name or two. Why not
interview a former dealer? Why not include these people who had to start their
lives over again? Is it because interviewing Sergio Marchionne is more
impressive?
I am here to challenge any well-respected reporter in the
future who wants to take on the statistics of Chrysler’s fall and rise to
include former dealers closed down with nowhere to turn. Why leave out those
hurt the most?
Why is that? It’s like reporting on a school closing but not
telling the audience which school is actually closing. It’s like saying a
Republican candidate won the state of Ohio but not reporting which candidate
actually won the state.
Come on, even 60
Minutes can’t do it right! Where is the justice in all of this?
Unfortunately, tiny little me can promote this blog post, but if I called up 60 Minutes and said, “Hey, I can help
you here,” I’m sure I’d get some customer pleaser who would take my message and
I’d never get a call back. Maybe a letter saying thanks but no thanks. This is
just an American shame and as a writer, blogger and freelancer, I feel
embarrassed even our most beloved investigative journalists like Steve Kroft
can’t get it right.
So, come on—any well-known investigative reporter takers on
this? I didn’t think so.
Sources: