Business Monday

Business Monday: Dodge/Chrysler is Starry Eyed?

Monday, August 20th, 2007

Today’s news item involves the web-sales policy at Dodge and Chrysler. It seems that several of their dealers are up in arms because only those dealerships with a five-star rating are getting referrals from the corporate website. Translation: if you go to Dodge’s website and pop in your zip code, you may get listings for more than one Dodge dealership in your area, but clicking on them will only take you to the storefront for the actual dealership if that dealer has a five-star rating.

According to AutoNews, Dodge/Chrysler says that their website was created for those dealers who achieved five star status (based on sales numbers and customer service rankings), but that they’re re-evaluating.

Dealers who don’t have five-star status say the policy not only hurts them, because they don’t get referrals, but also has the potential to hurt Dodge and Chrysler, because there are potential customers who aren’t being directed to the dealer that may actually be closest to them, just the closest five-star dealer.

(Unsurprisingly, most of the five-star dealers have no problem with the current policy.)

Your thoughts: Is this policy fair? What do you think?

Cerberus Names New Chrysler CEO

Monday, August 6th, 2007

If you follow the business operations of the auto industry at all, you know that a corporation called Cerberus has taken over the reins at Chrysler. They’ve just named Bob Nardelli CEO, and he along with former CEO Tom LaSorda were part of a press conference today in which LaSorda pledged his support of both Chrysler and Nardelli.

In addition, Nardelli endorsed the recovery and restructuring plan which LaSorda had launched in February, and both men met with United Auto Workers president Ron Gettelfinger, and Canadian Auto Workers president Buzz Hargrove, both of whom represented employee’s concerns over the new management.

While Tom LaSorda is supporting Nardelli, however, his former second-in-command, COO Eric Ridenour has chosen to leave the company, resigning after a 23-year tenure.

Industry analysts were somewhat surprised by the naming of Bob Nardelli to the top-spot, calling his appointment an interesting choice, and expressing doubts about his ability to give Chrysler what it needs. As well, many find it unsettling that this is the second time in the past year that an American automaker has named an outsider as leader. The first time was when Ford Motor Co. hired Alan Mulally from Boeing.

Bob Nardelli is a former senior executive at General Electric, and was criticized for excessive payroll and severance packages, though credited for overhauling the technology and purchasing systems at Home Depot.

About Automotive Blogger

Some people use their automobiles only to get from Point A to Point B. You know there's more than that. You get mad when someone makes a remark about your car that's less than flattering. You get riled when a cool car is destroyed in a straight-to-video movie. You realize when a new car doesn't deserve it's name of a great car of the past. When you see someone driving a boring vehicle, you feel sorry for them. You know it's not the destination that counts - it's the journey. Welcome home gearheads. Welcome home, car freaks. Welcome to the site that fuels your automotive obsession - AutomotiveBlogger.net

Automotive Blogger Author(s)
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