Chrysler LLC wants to eliminate roughly a quarter of its 3,200 U.S. dealerships by early next month, saying in a bankruptcy court filing today that the network is antiquated and has too many stores competing with each other. The company, in a motion filed with the U.S. Bankruptcy Court in New York, said it wants to shed 789 dealerships by June 9. Many of the dealers' sales are too low, with just over 50 percent of dealers accounting for about 90 percent of the company's U.S. sales. Dealers were told this morning through UPS letters if they would remain or be eliminated. The cuts are likely to devastate cities and towns across the country as thousands of jobs are los. Chrysler Vice Chairman Jim Press called the cuts difficult but necessary. He said the list of dealers is final and there will be no appeal process. Included in the list are 28 NY dealerships, including the Pritchard Dodge Chrysler Jeep dealership here in Ithaca. The 3.5 million customers who purchased vehicles from the affected dealers will be notified about the closures and their warranties will still be honored, said Vice President Steven Landry. About 187,000 jobs could be lost from the closing of GM and Chrysler dealerships.
Be the first!