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Kearney, NE Car Consumer Discussions

Chrysler dealer issue

by 62vetteefp on Mon Oct 27 19:55:03 PDT 2008

Looks like Chrysler will go bankrupt and sell the remainder to GM?? If General Motors acquires Chrysler LLC, state franchise laws would impose tight limits on GM's ability to kill brands or dump large numbers of dealers. Under those laws, GM would have to honor Chrysler's dealer agreements and support its brands, franchise lawyers say. And if GM were to eliminate the Chrysler, Dodge or Jeep brands, the lawyers add, it would have to pay dealers for their investments. One more if: Should Chrysler declare bankruptcy as part of merger proceedings, franchise lawyers say, GM would have more freedom to trim Chrysler's dealership network. "You can't talk about the dealer network until something actually happens," GM spokeswoman Susan Garontakos said late last week. "It's all speculation right now." Many analysts predict that if the companies combine, GM would keep the Jeep brand and continue to supply Chrysler and Dodge dealers with vehicles, if only through badge engineering. Most state laws prevent automakers from yanking a franchise without "good cause," Charapp says. The laws generally require formal state proceedings when franchises are terminated, he says. At the same time, Charapp notes: "Bankruptcy law will trump state dealer franchise protection statutes. There is a legal basis in bankruptcy for a franchisor to turn its back on its dealer agreement obligations." When GM bought most of Daewoo's assets in 2000, the Korean automaker already had filed for bankruptcy. GM's purchase did not include Daewoo's U.S. distribution network. Daewoo's 501 U.S. dealers were left without product. GM renamed Daewoo models and sold them at U.S. Chevrolet and Suzuki dealerships. When an automaker eliminates a brand — as opposed to going bankrupt — dealers have more rights. Still, says Dan Goldberg, a Boston lawyer who represents automakers, most state franchise laws recognize that automakers must be allowed to adapt to changes in the marketplace. "The purpose of the laws is not to freeze in place existing dealer arrangements and locations as they existed at the time the statutes were enacted," Goldberg says. Some Chrysler LLC dealers say the Chrysler, Dodge and Jeep brands are strong enough to survive a merger with GM. Others dealers are worried. "I'm very nervous," says Brian Hamilton, who sells GM and Chrysler brands in Kearney, Neb. "There's not much you can do when someone goes out of business. We'd all be faced with pretty major losses." Carlos Hoz de Vila, CEO of Condor Auto Group, concedes that some dealers would go out of business if GM and Chrysler merge. Condor, of suburban Philadelphia, owns eight dealerships, two of which sell Chrysler brands. Hoz de Vila says a GM-Chrysler merger would warrant federal oversight. "The government should make sure that the motives are pure," he says. "The merger should allow the companies to build better-quality product and serve the dealers better, not just allow GM to grab cash off Chrysler's balance sheet." Adds Hoz de Vila: "If the merger results in a stronger company, then it could be a positive."

Re: engine break-in [blueguydotcom]

by gagrice on Mon Sep 15 18:05:35 PDT 2008

San Diego only has one Audi dealership That is good to know. I was not impressed with the BMW dealer up in Kearney Mesa either. Just waiting on a selection of diesel SUVs.

Re: Can Wagoner survive? [credulity]

by dallasdude1 on Sun Aug 03 12:05:29 PDT 2008

By Frank Williams January 3, 2008 - 32,806 views I once worked for a colonel who'd address all obstacles by saying "you can solve any problem if you throw enough money at it." While our budget officer would have to breathe into a paper bag for a half hour afterwards, the colonel always managed to squeeze whatever was needed to resolve the crisis du jour from the budget– and solve the problem. Automakers native to the People's Republic of China (PRC) must have bugged his office; they've adopted the exact same philosophy. Successfully implementing the "I'll buy what I need" strategy requires two things: 1) money and 2) knowing where to spend it. The Chinese automakers certainly meet criterion number one. The PRC is now the world's second largest auto market; auto sales are booming. The Chinese law requiring all foreign automakers to buddy-up with a domestic partner has delivered unto them an enormous financial windfall. Criterion two– locating mission critical knowledge and/or technology– is a no-brainer. While there have been auto factories in the PRC since the mid ‘50s, the Chinese auto industry discovered the technological benefits of the aforementioned joint ventures (JV) since A Flock of Seagulls first flew. For the last thirty years, Western JVs have been flooding the PRC with new automotive designs, products and processes. Initially, these JV partners used Chinese labor to assemble automobiles already in production elsewhere. The Chinese partners learned how to bolt together a car, but not much more. By the 1990s and early 2000s, the foreign partners had started designing models specifically for Chinese consumption, retooling their plants for full-scale manufacturing. At this point, several "independent" Chinese auto manufacturers (i.e. companies not enmeshed in joint ventures) began leveraging their newfound carmaking skills to send in the clones: selling exact replicas of other manufacturer's models built for Chinese consumers. Blinded by golden goosehood, stymied by laughable and unenforced Chinese copyright and trademark laws, GM, VW, Ford and others turned a blind eye to this sincerely flattering fraternal competition. Western automakers wrote it off as the cost of doing business in a military dictatorship. Besides, in China's burgeoning automotive market, there was– and is– plenty of pie for everyone! Of course, Chinese manufacturers had bigger plans… For the last decade of so, Chinese automakers have started eying foreign markets. As they dipped their entrepreneurial toes into Western climes, they realized they lacked competitive cars, and the engineering expertise to design them. Disastrous European crash testing literally drove the point home. So Chinese automakers have started throwing money at European and North American automotive companies. Michael Laske, president of Austrian-based AVL China, says "The Chinese fundamentally lack products and knowledge, but they need to get into the market very quickly." And so AVL is banking big bucks, designing an entire engine line from the ground up to pop China's Chery. Companies selling world class technology in so-called mature markets are falling all over themselves in their rush to cater to China's hunger for the best of the best. The list of successful sellers includes BorgWarner (turbochargers, clutches, transmissions), Sweden's Autoliv (safety systems), Austria's Magna Steyr (marketing strategy, legal requirements), Robert Bosch (diesel technology), Italdesign-Giugiaro and Pininfarina (design assistance) and A.T. Kearney (management consultants). The joint venture partners are infusing their Chinese partners/competitors with cutting edge technology. GM has an engineering and design center in Shanghai, soon to be joined by a hybrid research center. To provide Chrysler with a small car for the U.S. market, Chrysler's engineers are tweaking every aspect of Chery's operations. So what happens next, once this technology transfer is bang up-to-date? China's domestic automakers will use their imported expertise to export cars abroad. Chery is already selling cars in Mexico; they've declared their intention to enter the U.S. market in the next two to three years. Chinese automakers will be out in force at this year's North American International Auto Show. To further the cause of global export, the Chinese government is pushing their domestic auto makers to merge into a "Big Three" and a "Mini Three." Given the government's protectionist views, once the mergers and reorganizations are over, GM, VW, Toyota et al will find themselves out in the cold. Western manufacturers seem blissfully unaware of their own usurpation. They keep pouring money and engineering talent into China– even as the Chinese manufacturers are taking the first steps toward merging into megacompanies. Once again, western car companies are so blinded by the money they're making that they can't see the dangers lurking beyond the next quarter's bottom line. But hey, that's the way the fortune cookie crumbles. If we don't do it, someone else will. Make hay while the sun shines. Pump and dump cuts both ways. That kind of thing. But any automaker that doesn't see China as a short term play, that stakes its long term financial future on the PRC, is headed for a rude awakening. Sooner rather than later.

2004 G35X Transmission Question

by adbrick on Thu Jul 17 14:29:32 PDT 2008

Just purchased a 2004 G35X with 56,000 miles. The rpms at 70 MPH are nearning 3500. Is this normal. At 55 mph they are 2200. Seems high for a 5 speed auto. I notice when I am in autoshift that it only goes to 4th gear. I was told this was a 5 speed auto with overdrive.

Re: Lexus: Takes a lickin keeps on tickin [andres3]

by gagrice on Thu May 03 01:06:42 PDT 2007

Dealers I have experienced poor customer service with. the rest I have no experience with. Bob Baker Lexus Over charging for LS400 repair, plus diagnosing problems that did not exist. List too long to repeat. Kearney Mesa Toyota Poor sales staff Poway Toyota Poor sales staff Toyota of El Cajon Sales staff OK, service department incompetent. Could not fix brakes on ex-wife's Camry. Firestone did the job after I had spent over $800 on front end parts and labor at Toyota. Also clutch went out at 11k miles on 1994 Toyota PU and not covered by warranty. $900 to repair.

Re: Personally... [lemko]

by gagrice on Thu Mar 29 06:43:48 PDT 2007

I have no problem believing the story. I have gone to look at vehicles at the El Cajon Toyota dealership several times. They usually have 3-4 salesmen wandering the lot looking lonesome. The dealer I have visited twice in Hilo the same. Poway Toyota I wandered all over the lot and showroom, never saw a sales person. Same for the Toyota dealer in Kearney Mesa, CA. The El Cajon Toyota people are nice enough though poorly informed. I drove the first Prius in the county at that dealership. Hilo dealer tried to convince me that the Prius was nothing but trouble that I should buy a Camry for less money. Of course the other two I could have had the cash in my pocket and not been able to buy a car at those dealerships. It all adds up to trouble if corporate Toyota does not set some standards for the dealers to follow. One other anecdote on dealerships. I spent over $800 with the El Cajon Toyota service department trying to get the grinding noise out of the front brakes on my ex-wife's 1990 Camry. They never fixed the problem. A local Firestone store fixed it for $150. I did report it to the proper agency in Sacramento. I am sure you know how far that got. Toyota claimed their usual story, "The brakes are working as designed".