RatWatcher

Chrysler, GM Dealer Termination Data: How Much Politics Involved?

A strategy nearly guaranteed to backfire. If in fact the idea is to allow one dealer chain a regional Chrysler monopoly -- that chain will have all the pricing power *for Chryslers*. However, since there are numerous near-exact substitutions in the vehicle universe, the net result will be a dramatic reduction in Chrysler sales in those regions. There is simply nothing so special about Chrysler vehicles that will sustain monopoly pricing.