Just back from visting a Chrysler dealer who got the "letter" today. He's losing one dealership, but keeping another.
But he was not waiting around for the bad news. When I visited, I notice a Kia sign already tied up to the side of the building. That's the way this economy works. Auto dealers are already trying to adapt to the new reality.
Some will lose everything. Others have cut the best deal they can and have sold out, merged or changed brands.
The next step is for dealers to figure out what Fiat will want them to do now. Will the surviving Chrysler dealers have to recapitalize so they can sell more cars? Will they need to build new dealerships? Can they afford to do that?
There is still a lot of negotiation and planning and deal making to be done. Which is why I suspect the dealer I spoke with was still polite. You could tell he had many choice words to say about this situation, but for now he is biting his tongue and looking to the future.
