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Obama To Close 1/4 Of Chrysler Dealers

From an elated New York Times:

Chrysler Plans to Shut One Quarter of Its U.S. Dealers


May 15, 2009

DETROIT — Chrysler told about a quarter of its dealers on Thursday that they are being eliminated by June 9.

The carmaker, which filed for bankruptcy protection two weeks ago, sent letters to 789 of its 3,200 dealers revoking their franchises. It also filed a list of the dealers it is cutting in bankruptcy court Thursday.

Chrysler said the “rejected dealers” accounted for 14 percent of its overall sales volume and that half of them sell fewer than 100 vehicles a year.

Pennsylvania is the state losing the most dealerships, 53. Fifty are in Texas. About a fifth are in Michigan, Ohio, Indiana or Illinois. Hawaii has one. Alaska is the only state with none…

Many dealers being cut only sell one or two of Chrysler’s three brands. In about 190 cases, Chrysler plans to reassign the franchise another nearby dealer, so that all three brands would be available in one location.

Currently, 62 percent of Chrysler’s dealers sell Chrysler, Dodge and Jeep vehicles. That will rise to 84 percent after this process is completed.

The dealerships losing their franchises will not necessarily close. Mr. Landry said 658 of them sell more used cars than new ones and therefore might be in a position to stay open as a used-car lot…

More job stimulation from Mr. Obama.

This article was posted by Steve on Thursday, May 14th, 2009. Comments are currently closed.

8 Responses to “Obama To Close 1/4 Of Chrysler Dealers”

  1. Douglas says:

    Sadly, my local Chrysler Jeep dealer got the letter today. They’re across the street from a scummy Dodge dealer. Oh well, I’ll follow the service manager to whatever location he ends up. When you have a guy you can trust instead of a guy who tells you how much work they’re doing only to tighten a bolt or two you follow the guy you can trust.

  2. MinnesotaRush says:

    So just where is that scorecard of o-blah-blah’s on the gazillion jobs he’s gonna save or create …

  3. BillK says:

    The full list of dealer closures, in case anyone needs it:


  4. catie says:

    Bill, thanks for posting that list it was interesting to see that one I had purchased my Chrysler LeBaron 1988 white on white Convertible from there. They really worked with me to get that car and I loved it.
    I heard that they got the bad news via Fedex or UPS. That is ridiculous. Wonder how many of these closed dealerships had owners or employers who gave to conservative or Republican causes.

  5. proreason says:

    This makes no sense. I read the entire article, and nowhere does it say that closing low-volume dealerships saves Chrylser a dime.

    25% of the dealerships sell 14% of the car. When they cut out that 25%, the lowest remaining 25% will also sell 15% or less of the vehicles.

    And now, there will be thousands of unnecessary layoffs at these 789 dealerships.

    Since the TMCC is calling the shots, something very sinister is going on with this.

    My hunch is that it is an early salvo in what is coming next…..a full fledged assault on small businesses of all kinds. They are independent, harder to control than big business, and threaten the ability of the TMCC to control the population.

    Small businesses, churches, families……all of them challenge the government’s ability to control YOU.

    The only war this government is waging is a war on YOU.

  6. Barbie says:

    The interveiw I saw on Fox today was with a dealer who did very well and sold lots of cars. He’d been notified he was losing his dealership, and he was very angry because the company did not issue any criterion by which this decision was made.

    I’m thinking it’s based on if the owner is successful and hard working and profitable, then that’s the type Obama hates and wants to punish. Obama’s intent (as everyone here already knows), as with all sectors of the economy, is to redistribute the opportunity/money to those who are failing ( economic justice in O’s mind). He’s punishing the successful in order to reward the failures, and the successful dealerships will be the ones eliminated. That’s just IMO. But it fits Obama’s MO.

  7. jrmcdonald says:

    Dealers sell cars. Closed dealers don’t sell cars. Why is obama wrecking this country?

  8. sheehanjihad says:

    I wonder, just for the heck of it, if the closed dealerships are in Republican districts…..and the ones left open are in Democrat areas…

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