Chrysler to Close 789 Dealerships by June 9th

[Administrator]

According to the latest bankruptcy court filings by Chrysler, the company plans to cut 789 dealerships (one quarter of the current dealer network) in an effort to emerge as a financially viable company.

The company sent out overnight letters to the dealerships that will be eliminated.

As expected in bankruptcy, Chrysler will not buy-back the vehicles, tools or parts, but it will put the dealerships in touch with surviving dealers who can then work out a purchase.

Chrysler also plans to push ahead with a plan to put all of its brands under one roof. Currently 68 percent of dealerships carry Dodge, Chrysler and Jeep products, but after the 789 are closed, that number will rise to 80 percent.

There appears to be even more strategy involved as well as 345 of the dealerships being shut down (or roughly 44 percent) also sell vehicles from a competing brand.

Steven Landry, Chrysler's VP of Sales, spoke optimistically about the future of the 789 dealerships, stating that 83 percent of the businesses sell more used cars than new and that half of them sell fewer than 100 cars per year. "The majority of these dealerships are going to continue on and prosper either selling used cars or other brands," he said.

The 789 dealerships will receive a 23 business day court review of their individual situation.

More: Chrysler to Close 789 Dealerships by June 9th on AutoGuide.com

[Mr. iNCREDIBLE]

Originally Posted by Administrator

There appears to be even more strategy involved as well as 345 of the dealerships being shut down (or roughly 44 percent) also sell vehicles from a competing brand.

I have always found this part amusing..

the couple of Chrysler dealers around me that have closed recently also sold either Hyundai, Kia, Acura, or Nissan..

it always struck me as very odd that they had non-related brands on the same lot..

never seen any other brand do that..

[GoofyTimL]

My local Chrysler dealer (from whom I bought a mini-van in 1994, and the 2005 300C and then the 2006 Heritage Edition 300C) is on that list. Also the local Jeep dealer (mixed branding... also sells Caddy and Olds). The only one left is the "auto group" that bought the local Dodge franchise within the past 8-10 months. At least they aren't on the list.

[muffins]

I want to look up a dealer in my area to see if they are closing.
where is a list that has the names of the dealers???

[GoofyTimL]

Here's a PDF file that someone posted... apparently from the Detroit News.

PDF Format
http://download.gannett.edgesuite.ne...lerdealers.pdf

[Michaelr]

Spew if you letter from Chrysler got lost in the mail so you thought you were safe!

[fm1]

Originally Posted by GoofyTimL

Here's a PDF file that someone posted... apparently from the Detroit News.

PDF Format
http://download.gannett.edgesuite.ne...lerdealers.pdf

I just reviewed all 40 pages of this looking for the Dealers in my area, Central Jersey & Eastern PA. 10 dealers closing right off the bat, one in my own town. It shouldn't come as a surprise though, this area is loaded with D-bags driving overpriced BMW's , Benz etc. , each trying to impress each other with their $800.00 /mo. lease payment. In any event, this news sucks as 1 of these 10 dealers in particular was going to get my new truck purchase next year. I guess I will go to my local guy ( who doesn't sell Dodge trucks ) and pick up some discounted parts that I will eventualy need, such as sway bar bushings, and wish him well.

Also on this list I see alot of DEALERSHIPS closing, and NOT ONE STEALERSHIP closing.

[putterman5]

This is very interesting news that I had a feeling was on bound to happen with the bankruptcy. On of the local dealers in my area is closing and the mentioned on the news that the owner told his people to sell the vehicles at "net cost". I have been looking at an 08 300 SRT8. Any ideas as to what that "net cost" would actually be. I'm thinking its just invoice but I hope its something different.

[kings11]

In the Portland Oregon area, they are closing the right dealerships. The two identified were the worst in terms of service and lack of stock.

Scott T

[kevenj]

Originally Posted by Mr. iNCREDIBLE

I have always found this part amusing..

the couple of Chrysler dealers around me that have closed recently also sold either Hyundai, Kia, Acura, or Nissan..

it always struck me as very odd that they had non-related brands on the same lot..

never seen any other brand do that..

the largest volume Chrysler/Dodge/Jeep dealer in the world is Dave Smith Motors in Kellogg, Idaho - - and they are also the largest GM dealer in the Northwest U.S. both GM and Chrysler hate it but both tolerate it because they sell so darn many cars and trucks.