How is “thinning the herd” going to improve Chrysler’s financial condition?
I've been trying to figure that out too. If the individual dealerships don't sell enough products, they will fold on their own.
"It's a dog eat dog world and I'm wearing Milk Bone underwear". (Norm)
I have an even better question. If thinning the herd is good for the private sector? How come we are not thinning government?
I may not have the full answer but I think I have part of the answer. The Big 3 have it in their contracts with the UAW that they will keep so many dealerships open. Each dealership has to have a minimum inventory thus providing a minimum number of cars being produced each year (job security).
Bankruptcy and government takeovers have freed Chrysler and GM from some of the limitations of those contracts. They dont owe anything to the independent, privately owned, non union dealerships.