Rallye stays open without Chrysler
 
Marc Treiber”™s phone is ringing off the hook. But instead of customers looking for hot Memorial Day deals, he”™s fielding calls from business and retail customers that have relied on Rallye Autoplaza in Orange County”™s town of Monroe as their go-to dealership for the past 19 years and want to know what”™s going on.
Treiber, like hundreds of other dealers across the country, received a form letter from Chrysler dated May 13 saying their franchises would be discontinued, effective almost immediately.
With or without Chrysler, Rallye is staying open with consumer options that include Suzuki, used cars and repairs.
What puzzles and upsets Treiber most of all is how Chrysler arrived at its decision of whom to cut off and how quickly Chrysler intends to act. “There was no rhyme or reason,” said the long-time auto dealer. “Dealers who are failing were left alone; others that are successful got the form letter. And Chrysler has left us barely any time to appeal its decision.”
Rallye Autoplaza on Route 17M has watched other car dealerships come and go in nearly two decades in business. Treiber said he thought twice when he chose the name for his own dealership, and he”™s counting on that strategy to save his business in the endgame.
“I didn”™t want to be ”˜Rallye Dodge”™ or ”˜Rallye Chrysler,”™” said Treiber. “I”™ve been in this business in one way, shape or form all of my life and you see brand names come and go. I chose the name Rallye Autoplaza as my legal business name. It”™s a good thing, too, because it”™s been tough enough trying to explain to my customers and the people I do business with that Rallye Autoplaza is not closing. Yes, we lost a few franchises, but our doors are staying open.”
Treiber says he and other dealers are not going to take Chrysler”™s decision lying down, but didn”™t want to go into details about how he and others in the same situation are going to fight Chrysler”™s decision. “I”™ve got nearly 40 families depending on me to keep food on the table,” he said.
While Treiber is now bereft of his franchises for Chrysler, as well as Dodge and Jeep, he still maintains his Suzuki franchise, “and that”™s going strong. I”™m looking at other opportunities and actively looking for another brand. In the meantime, I”™ll continue to sell Suzuki and maintain my used car lot. I have a fully staffed repair and body shop and that”™s not going anywhere. People who need their cars serviced need to know I”™ll still be here.”
According to Chrysler”™s form letter, the dealerships it has targeted will lose their franchises by June 9. Until then, says the letter, “Chrysler intends to maintain business as usual until the rejection takes place.” For owners like Treiber, it”™s going to be anything but business as usual.
“First, we are going to sell off as much of their inventory as possible. I”™m still shocked, but more than that, I”™m disgusted,” said Treiber. “I”™ve got nine acres here that I pay more than $100,000 in property taxes on each year. Last year, I paid $1.2 million in sales tax and more than $200,000 in employee payroll taxes. Even in this awful economy, we were making our numbers. What hurts the most is my business has always been in the plus column. Why they chose to cut me off, I have no idea.” All Treiber has is the form letter letting him know his franchise agreement will end June 9.
In a prepared statement released shortly after Chrysler”™s announcement to go into Chapter 11, the National Automobile Dealers”™ Association said General Motors”™ and Chrysler”™s plans to cut their dealer networks are “drastic, far reaching and will impact more than 100,000 dealership employees and thousands of their sales and service customers.” NADA said it expects GM and Chrysler to honor all their obligations to the 789 affected dealers.Â
“One thing I am grateful for, I have my own business name and there is opportunity to bring in another franchise to complement my Suzuki franchise,” said Treiber. With that, Treiber went back to answering the endlessly ringing phone, assuring long-time customers that Rallye Autoplaza is “staying in business … don”™t worry. We are still here and we”™ll stay here.”