Is Chrysler shutting down a dealer near you?
As part of its effort to restructure, Chrysler LLC filed a motion with the U.S. Bankruptcy Court to effectively close 789 dealers by early June by ending their franchise agreement. Many of the dealerships offer products from other brands and may, therefore, continue as a business.
In a conference call, company executives explained that they focused on reducing dealerships that were not profitable, or likely not to be so in the future. Tough decisions were based on numerical analysis, though execs acknowledged the employee impact this move would make and spoke to considerations toward standalone and competitively paired dealerships.
It was said these 789 dealers serve three million customers—that makes for a lot of consumers who will need to turn elsewhere for parts, service, and vehicles. It is possible, even probable, that some dealers may continue servicing Chrysler products. (Golling Chrysler Jeep Dodge in Bloomfield Hills, Michigan, shown here is not among the dealers expected to close.)
These dealers have a combined standing inventory of 44,000 models—vehicles they will be eager to sell in the next month. (For the record, we don’t recommend any current Chrysler, Dodge, or Jeep models.)
On the other hand, exercise caution in ordering parts from these dealers, as you want to make sure the parts can arrive and be installed prior to their locking the doors.
The economy is exacting a painful toll on the auto industry. Although dealer closings have been increasing, they are about to become a lot more visible in about 789 communities. Chrysler owners in those areas will need to find other nearby dealers, or turn to independent repair and maintenance shops.
Review the list of dealers to be closed nationwide (pdf) to see which are affected in your area.
We will continue to monitor this fast-moving story, reporting here in the Cars blog and also updating advice and news on the Auto Crisis hub.
Updated 5/15/09
Previous
Comments