Saturday, 22 December 2012

Chrysler plans to close 789 dealerships

An employee at a Washington-area Chrysler dealer cleans up with a broom and dustpan in New Carrollton, Maryland, April 30, 2009. (Xinhua/Reuters File Photo)

The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the United States, costing jobs and tax revenue.

Chrysler dealerships are not the only ones scheduled to get bad news this week. It is reported that General Motors Corp., the biggest U.S. auto maker, is notifying 1,100 dealers that it will not renew their franchise agreements when they expire at the end of September of 2010.

The automaker now has about 3,200 dealers across the United States. It wants to have stronger, more profitable dealers with better facilities. Chrysler spokeswoman Kathy Graham was quoted as saying that the company will notify specific dealers before commenting publicly.

- Chrysler has told a bankruptcy court it plans to eliminate 789 of its dealers nationwide as part of a government mandated effort to restructure its failing business, it is reported here Thursday.

In a document filed in federal bankruptcy court in New York, the company posted names of the dealers that have been targeted. They include Currie Motors of Forest Park, Ed Napleton Dodge in Westmont, Arlington Chrysler and Jeep Dodge.

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