Chrysler will close 11 Kansas City-area dealerships

[BSykes]

Chrysler LLC will close 789 dealerships nationally, or about 25 percent of its roughly 3,200 U.S. dealerships, including 11 in the Kansas City area.

The Kansas City area will have eight remaining Chrysler dealerships, according to a bankruptcy court filing and Chrysler’s Web site: Landmark Dodge Chrysler in Independence; Bob Hoss Dodge Chrysler in Kansas City, Kan.; Lee’s Summit Dodge Chrysler Jeep; Olathe Dodge Chrysler Jeep; Overland Park Jeep Dodge; Gladstone Dodge; Speedway Chrysler Dodge Jeep in Lansing; and New Century Dodge Chrysler Jeep in Paola.

Those slated for closing:

• Cannon Chrysler Dodge Jeep in Excelsior Springs

• Mitch Crawford Holiday Motors (three Raytown dealerships)

• Jack Miller Chrysler Jeep in Kansas City

• Milner-O’Quinn Chrysler Dodge in Harrisonville

• Tony Martens Dodge in Platte City

• Weinberg Dodge in Grandview

• Keystone Chrysler in Mission

• Bud Brown Chrysler in Overland Park

• Atchison Automotive Group

“To see the dealership count reduced is a blow to Kansas City and (Missouri and Kansas) because all the sales tax revenue just vanishes,” said Larry Carl, executive vice president of the Automobile Dealers Association of Greater Kansas City. The average dealership in the Kansas City area and the nation has about 50 employees, he said.

“The loss of these dealerships really does nothing to the viability of the manufacturer,” Carl said. “The dealer equals revenue to the manufacturer. ... The manufacturer is essentially cutting off its revenue stream by closing dealerships.”

Dealers pay for about 90 percent of all the costs involved with dealerships, Carl said, leaving manufacturers to pick up roughly 10 percent.

The Kansas City area’s remaining Chrysler dealers probably will be in a better position to have more successful sales volume and service operations with fewer competitors, Carl said.

Privately held Chrysler filed for Chapter 11 bankruptcy in April in a deal that includes a partnership with Italy’s Fiat.

http://kansascity.bizjournals.com/kansa ... a=e_du_pap

[DaveKCMO]

the sales tax argument is a total red herring. if people want a chrysler (which they've patently exhibited that they do NOT), they're going to buy one at a metro dealership whether it's in mission, kansas city, or overland park. people don't seem to have trouble finding dealerships for lower-volume vehicles like VW, mini, or saturn.

[droopy]

people don't seem to have trouble finding dealerships for lower-volume vehicles like VW, mini, or saturn.

I totally agree with your point, no one will miss a few Chrysler dealerships.  But had to note that people will have trouble finding a Saturn dealership in the metro:

http://www.bluespringsjournal.com/home/story/14272.html

[KCPowercat]

I doubt saturn exists outside of a planet within a couple years.

[BSykes]

The worst thing about these closures, other than the loss of jobs and the affect on individuals who are directly involved, is the vacant lots they will leave behind...

[DaveKCMO]

The worst thing about these closures, other than the loss of jobs and the affect on individuals who are directly involved, is the vacant lots they will leave behind...

especially in places that have a disproportionate amount of dealerships. i'm looking at you, merriam and independence!

[KCPowercat]

Aren't most jobs at a dealership commission anyways?  It's about time dealerships got "right sized"

[lock+load]

Sucks for those that own the dealerships and are being "right sized" out of their business.  I guess it just like getting laid off, just with 100 cars you have to sell in a month.