Projo Cars Blog

We recently profiled the Speedcraft Chrysler-Dodge-Volkswagen dealership on Old Tower Hill Road in Wakefield and focused on the smart redesign of the VW shop which was just being completed.

Now it seems Speedcraft is closing its neighboring Chrysler-Dodge dealership, although the company declined to comment on the possible development.

But with just a few new Chrysler vehicles outside and the Chrysler-Dodge brand names removed from Speedcraft’s Web site, it would seem the small dealership is being shuttered. The dealership is still signed Chrysler-Dodge.

Indeed, the only Chrysler vehicles listed for sale on the Web site are in the pre-owned category, although there do seem to be a bunch of new Dodge Nitros parked round the back.

Speedcraft, which is owned by Roderick and Lisa Lichtenfels, acquired the Fred W. Smith Chrysler-Dodge dealership, which had a long history in South County, along with its 30 or so employees in December 2005. The plan called for operating both dealerships alongside each other.

But both Chrysler and Volkswagen have been navigating declining sales.

With some exciting models coming out this year, VW could be on the verge of a comeback, especially with its clean diesel technology which is due with the new Jetta range of sedans and wagons, starting in August.

Chrysler, on the other hand, has been hit in the chops with the surge in gas prices, having only a limited number of small cars on its books. The Dodge Caliber may be holding its own, but even the PT Cruiser is not selling well, with sales down nearly 40 percent in the first five months of this year compared to last year, according to the latest edition of Automotive News.

Indeed, as I reported in last week’s blog, Chrysler has seen overall sales drop nearly 20 percent so far this year compared with the first five months of 2007, including a drop of nearly 25 percent in May.

As a result, it has made a number of moves to push sales, including the grand offer of guaranteeing $2.99 a gallon gasoline for 12,000 miles a year over three years for each new vehicle, and a decision to follow General Motors and sell certified used Chrysler, Dodge and Jeep vehicles on eBay.

The company also announced it plans to undercut GM in the pricing of its hybrid SUVs – the Chrysler Aspen and Dodge Durango – but does anyone want such oxymorons anymore?

As for closing dealerships, all three Detroit manufacturers have been moving toward cutting costs and increasing profits by closing small shops and bringing all corporate brands under one roof in the remaining ones.

- Peter C.T. Elsworth

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