As General Motors and Chrysler slash dealers, companies supplying software and hardware to run dealerships are losing a lot of customers. But dealer management system vendors say they expect increased business from surviving retailers.
The leading providers, Reynolds and Reynolds Co. and ADP Dealer Services, refuse to say how many of their customers were among the 789 Chrysler dealers losing franchises in recent weeks. GM remains a question mark since it hasn't released a list of doomed franchise holders.
"Clearly, we will end up with fewer customers," says Reynolds spokesman Thomas Schwartz. ADP senior vice president Kevin Henahan says the impact will be sizable: "But ADP is a big, diverse company, and we think we can weather the storm."