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[0:00] ..." and WBZ newsroom we're talking with George Magli -- a a senior auto industry analyst for global insight which is based in Lexington. About the announcement out of Chrysler today that it's going to contract its dealer network General Motors is expected to follow suit as well what do you think of this plan is that enough is it too deep."...
[0:56] ..." Now it in terms of god the Chrysler. Numbers those are the ones were were actually getting Townsend killers attached to the number. It. Do they even do they need"...
[1:12] ..." they've studied in the it and what they're doing additional low which General Motors visit. Is there ranking could be used these dealers said there -- if basically the underperforming dealers -- will go with I think. I've heard that there are 600 -- description of the political motive those senses haven't apparently done deal was close of the that's. And it's 25% of the dealer network. That is significant about that did. You know it if that doesn't -- on it you know quite obviously the -- did double turnaround with the Chrysler. It would be is Japanese."...
[1:55] ..." to be does that -- CB. I shall Aurora television they're Chrysler dealership. Quote I ordered the jury got a lawyer he -- You know he's he's going to sue me that this is"...
[3:23] ..." You know we've been talking about General Motors and Chrysler but obviously having the success story if you want to call -- that and all of this -- mean obviously they didn't need. Government assistance and -- to build at least my reading. They have made no plans to contract their dealer network traffic."...
[4:10] ..." they're struggling to just as mightily uses GM. And yet it was Chrysler right now but this certainly they've they've posed significant sales declined -- everybody else so. You know today everything could -- let's"...
[4:25] ..." One last question for you George when when you look at these dealer closings there's a tremendous multiplier effect as they're not in terms of businesses that are reliant on them."...
[0:00]" This is Lisa Meyer and WBZ newsroom we're talking with George Magli -- a a senior auto industry analyst for global insight which is based in Lexington. About the announcement out of Chrysler today that it's going to contract its dealer network General Motors is expected to follow suit as well what do you think of this plan is that enough is it too deep."
[0:19]" now I think it's it's probably necessary. But it is a necessary evil it. They'd need to really -- both bird actually really need to re did dealership base. While out -- it was a lot of hardship on people. They just simply do that the market here the volume. To support these Steelers. I think it's -- developers might seem drastic but I think. They'd -- they need to cut that they need to cut to significant. And I think this is what to do."
[0:56]" Now it in terms of god the Chrysler. Numbers those are the ones were were actually getting Townsend killers attached to the number. It. Do they even do they need I guess greater cuts than that or do you think that what they've done is sufficient."
[1:11]" Well I would think they've studied in the it and what they're doing additional low which General Motors visit. Is there ranking could be used these dealers said there -- if basically the underperforming dealers -- will go with I think. I've heard that there are 600 -- description of the political motive those senses haven't apparently done deal was close of the that's. And it's 25% of the dealer network. That is significant about that did. You know it if that doesn't -- on it you know quite obviously the -- did double turnaround with the Chrysler. It would be is Japanese."
[1:49]" Did they to the dealers have any records or the horse sort of out of the barn on this."
[1:53]" Well I read the deal was to every courses it is going to be does that -- CB. I shall Aurora television they're Chrysler dealership. Quote I ordered the jury got a lawyer he -- You know he's he's going to sue me that this is -- The issue today is is because of the bankruptcy reorganizations going on. They don't have the -- record that they had years ago on the franchise was that they be just squeezed out of business because of bankruptcies. That makes it difficult but I believe they still. They don't have to go without a fight that's --"
[2:32]" In terms of of these cuts do you see this as being basically okay this is what we need to realign our businesses this is all we're going to do or what -- the other issues still drop."
[2:42]" But they should the other issue could -- still drop it if he if that if the market doesn't turn around this -- this will lower its sales. -- with the the volumes today it'd be expected volumes. Next year growth of the businesses -- it's. What the bottom line is if if they did it a lot of bad again. Which really comfortable way that we are right now but it that this doesn't preclude that things get worse. Predicted that ago you know you've got to go back to square one. Actually that's what happened with the reorganization -- with the place and over a year ago."
[3:23]" You know we've been talking about General Motors and Chrysler but obviously having the success story if you want to call -- that and all of this -- mean obviously they didn't need. Government assistance and -- to build at least my reading. They have made no plans to contract their dealer network traffic."
[3:38]" I feel like they did you know they've been doing this tool. That I have -- anything that says. That there is any realistic or any significant about it -- cards right now it is have made it would for. But that's not to say. That that could happen at the future of they've set themselves up well. They have to cage they've got a good product programs in place Mulally is. Is getting. Five marks from what he's done. Which you'll have to look at the Ford's sales and they're struggling to just as mightily uses GM. And yet it was Chrysler right now but this certainly they've they've posed significant sales declined -- everybody else so. You know today everything could -- let's put it that way."
[4:25]" One last question for you George when when you look at these dealer closings there's a tremendous multiplier effect as they're not in terms of businesses that are reliant on them."
[4:34]" this is the issue today is. Obviously these are and that you mention it WB's Tokyo basic itinerary of the community at this this is this is going to hit hold. It certainly you know that it needed it located certain locations throughout. Throughout the country and I think that that you know. The articles they talked about the -- urban areas but again it or. Minority dealerships. So. This is this is significant. As far as that ripple effect that that will happen. You know -- Indeed in the metro areas of the country."
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