Pain in the Auto Industry

Well, 789 Chrysler dealerships got notification today that they’ll be out of business by June 9. 

Personally, I think that this is the first sign of the pain and destruction that is going to hit the economy from the automotive world.  The word on the “street” is that GM is soon going to do the same thing to 2600 dealerships tomorrow.

Tom Vanderwell

Dealerships slashed, to the dismay of owners – May. 14, 2009

For 789 dealerships, the man in brown came carrying an overnight letter from Chrysler LLC indicating that they are being closed as part of the automaker’s bankruptcy. Some dealers received additional phone calls from company representatives, while others discovered their fate after being contacted by reporters.

Those calls and letters informed dealers that on Thursday morning Chrysler had filed a plan with the bankruptcy court listing the 789 Chrysler, Jeep and Dodge dealers it selected to discontinue operations. Under the plan – which is still subject to review by the bankruptcy judge – the dealers have until June 9 to close their Chrysler franchises.

Auto Dealerships

Random Posts