Chrysler Warns People About Doing Business With Their Dealers…Wait, What?! Weirdness In Hellcat Land

[admin]

Ok things are getting strange in the land of the Hellcat. There are two things happening, both seemingly independent of themselves which point to what may be a larger issue. The thing that we saw first yesterday was a recall of ALL the Hellcat Chargers and Challengers on the road due to a potential fuel […]

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"Allocation" (in other words factory limits on what dealers can stock) is a sad reality of the modern car business. The OEMs finance their dealer inventories (called "floorplanning") And they don't want crazy over-ordering because that can lead to dealer payment defaults. And the production side wants steady output and not inefficient surges and lulls in demand based on speculative orders and unpredictable dealer demand.

"Allocation" is typically based on a dealer's sales history, with the assumption being that past results are somewhat predictive of future sales.

Dealers tend to mark up "hot" limited allocation "halo" models and hold firm on the price. (Halos draw in impatient "ups" (customers) who tend buy more "bread and butter" models and halos are a dealer profit center because demand exceeds supply) FCA seems to be penalizing this by practice by preventing dealers who had a Hellcat in stock for more than five days from their next monthly allocation.

To special order a car now, you basically have to find a dealer with allocation. If not, the order is often delayed until it can fit into the dealer's allocation schedule. Apparently this is to prevent false "straw" orders from circumventing the allocation process.

Bangshifters would all love for FCA to be building Hellcats day and night and parking them in a "sales bank" as old Chrysler did back in the '60s. Those days are gone.

[STINEY]

Your heads would spin if you knew the ass-backwards parts ordering Bull-pucky that Fiat-owned CaseIH is forcing down their dealers throats.

Removing all discount structure, forcing dealers to act as a warehouse to the OEM and other dealers, rewarding non-performing and non-stocking dealers with discounts for buying from stocking dealers who get no discounts (Yes, forced selling at a loss....and rewarding the non-performers - with a mandate on selling a certain percentage of these instances or a further penalty will be applied)

There is NO incentive to order and stock, yet there IS a penalty for NOT selling to a non-stocking dealer, or back to the OEM. Think about that one for a minute.

We won't even get into the verbal dislike for their end-user (farmers) in the US, literal hate for the reason for their existence.

Fascism unleashed, you might want to make sure FCA and affiliates are not part of your retirement portfolio.