ROANOKE TIMES 
                      Copyright (c) 1995, Roanoke Times

DATE: Wednesday, December 13, 1995           TAG: 9512130052
SECTION: BUSINESS                 PAGE: B-6  EDITION: METRO 
DATELINE: DETROIT
SOURCE: Associated Press 


CIRCUIT CITY UNIT TO SELL CHRYSLERS INDUSTRY ANALYSTS DUB DEAL AN EXPERIMENT

Chrysler Corp. has joined forces with Circuit City's CarMax used-car subsidiary, agreeing to let CarMax sell new Chryslers, Plymouths, Jeeps and Eagles on its monster lot in Norcross, Ga.

``CarMax has clearly demonstrated an ability to connect with the purchasing preferences of today's late-model, used-car consumer,'' Chrysler sales vice president E. Thomas Pappert said Tuesday in a statement released by Richmond, Va.-based Circuit City Stores Inc.

He said Chrysler hoped to learn lessons from CarMax that will apply to its new-car sales process.

Circuit City is the nation's largest retailer of consumer electronics and major appliances. Its CarMax unit operates four ``Auto Superstores'' which stock from 400 to 1,000 late-model used cars.

They use what company officials describe as a ``customer-friendly selling process'' that lets potential buyers browse the inventory using touch-screen computers while parking their kids in play areas that are part of the showrooms.

The company plans to open a fifth store next year, but still considers its foray into the car business an experiment, Circuit City senior vice president Austin Ligon said. ``We're trying to develop a prototype ... for a national business.''

He wouldn't release sales figures for the stores.

The 1- to 5-year-old used cars CarMax specializes in are sold with no-dicker prices, five-day money-back guarantees and 30-day warranties that cover more than 100 parts that the CarMax service department inspects and certifies.

The Norcross CarMax operation has space to display up to 1,200 vehicles. It is the only CarMax store with the Chrysler franchise.

Frank McCarthy, executive vice president of the National Automobile Dealers Association, described the CarMax-Chrysler deal as a ``small experiment'' that will be interesting to watch. But he said he did not expect it to start a trend of manufacturers granting franchises to publicly held companies such as Circuit City.

Most car dealerships are owned by individuals or families for good reason, McCarthy said.

``The manufacturers have learned that when you have somebody with the bulk of his net worth invested in the store, he shows up every day, he makes good decisions ... he has the greatest interest in taking care of the customer,'' he said.


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