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Young Entrepreneur Forums » General Business » Franchising » Question about Chrysler's Bankruptcy - Curiousity



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Old 05-26-2009, 02:57 PM   #1 (permalink)
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Question about Chrysler's Bankruptcy - Curiousity
I have a question. I have no interest in owning my own dealership, but I was wondering how it is that Chrysler can close down car dealers when they own their own cars?
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Old 05-26-2009, 03:04 PM   #2 (permalink)
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It has to deal with the business relationship between dealer and supplier.

If you were strictly selling Sunkist Oranges and Sunkist went bankrupt (although bad example because sunkist is not just one company) you couldn't start selling someone elses product
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Old 05-27-2009, 10:27 AM   #3 (permalink)
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I think its a bad deal. Of course bankruptcy always hurts a bunch of people. I have heard of some dealerships just opening up and now they get hit with this. Its sad.
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