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AutoBlog: BREAKING: Chrysler 'rejects' 789 dealers nationwide, works to pare network by 25% by June 9

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Filed under: Car Buying, Government/Legal, Hirings/Firings/Layoffs, Chrysler, LLC., Earnings/Financials

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Chrysler has just announced that it will 'reject' some 789 of its dealerships by June 9 as it works to downsize through Chapter 11 bankruptcy restructuring. That represents a 25% cut in its dealer networks, leaving 2,392 Chrysler, Jeep, and Dodge dealers to carry on if the automaker is able to successfully emerge from bankruptcy with its new partner, Fiat.

Auburn Hills reiterated that it will be "business as usual" with its entire dealership body throughout its bankruptcy proceedings, with plans to honor warranty and incentive payments "during the period that rejected dealers remain active."

According to information obtained by Automotive News, individual dealers will learn whether they are rejected or accepted via UPS letters delivered this morning. At that point, dealer owners will have 23 business days for a 'court review' of their individual cases.

The same memo that disclosed the planned UPS letter disbursement also details that after the 789 dealers are rejected, that 80% of its remaining dealers will carry all three of the company's brands (that figure presently stands at 62%). According to that communiqué, Chrysler does not expect for many of those dealers to close just because their franchise contracts are being rejected - about 345 of those rejected operations are paired with other competing brands, and according to Chrysler executive vice president of sales, Steven Landry, fully 83 percent of the disenfranchised dealers currently sell more used vehicles than they do new ones.

Thanks to the protections afforded under bankruptcy, Chrysler will not be legally required to buy back any vehicles, parts, or tooling from rejected dealers, but the automaker says it will work to pair the disenfranchised with remaining dealers who may be willing to buy those assets.

Chrysler vows to contact the more than 3.5 million customers who have purchased cars and trucks through the rejected dealers to give them additional information on how to get their vehicles serviced.

If you're wondering if your local Chrysler dealers are earmarked for closure, a complete PDF list is available by clicking here.

Official press release after the jump.

[sources: Chrysler; Automotive News - subs. req.| Image: Scott Olson/Getty]

Continue reading BREAKING: Chrysler 'rejects' 789 dealers nationwide, works to pare network by 25% by June 9

BREAKING: Chrysler 'rejects' 789 dealers nationwide, works to pare network by 25% by June 9 originally appeared on Autoblog on Thu, 14 May 2009 13:00:00 EST. Please see our terms for use of feeds.

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There's alot of small town shops on the block. But there are still many stand alone Dodge, Jeep, or Chrysler stores too.

The cuts in Chicago area are mainly stand alone brands a few miles from another Mopar store, which are then combining. In one case, a Dodge and C-J dealer are across the street from each other, and makes sense to merge.

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We'll it is interesting to see that the few places in Washington / Oregon / The Pacific NW are mostly stand alone dealers, in the bigger towns, they have already merged the brands and have a single dealership to deal with all 3 brands of auto's. I was surprised to see a few all in one dealerships that are being closed, but I figure the towns must be pretty small with very little product movement.

I did find it Ironic that they mention that most of these dealers will stay open due to other brands they also sell. Then looking on the list I see that allot of the dealers that are loosing their franchises also sell Pontiac and Saturn. Two other brands that are also going bye bye.

Be an interesting year.

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Glad to see Country Motors a.k.a Bob's Dodge in CT going. They are not the best representatives Chrysler has at the moment, to say the least.

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FYI--CNN is now saying GM will cut 2600 or 42% of their dealers. WOW

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Looks like the closest dealer to me is safe. One dealer in Philly is on the list, and the Jeep store of a local dealer looks to be closing.

The rest of the PA dealers seem to be rural stores.

I was surprised to see one name on there, it is a semi-local dealer that specializes in trucks (GMC,Chevy,Dodge) and sells a ton of them. It looks like Dodge is abandoning all of the truck dealers.

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The one across the street from me is closing.

Strangely enough, it's listed as a Dodge Trucks dealer, but they have Avengers, Calibers, and Chargers on the lot.

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I still miss our stand alone Dodge Dealer. It wasn't the biggest or the prettiest, but the service was top notch and the sales people were friendly and a pleasure to talk with. The guys at Clark Chrysler/Dodge/Jeep don't seem to want to talk to you at all, and the service people are not helpful at all.

I went in a could week ago asking them about taking the door handle off of the assembly and they told me that it couldn't be done, even though I know for a fact you can order the door handle by itself from them. <_<

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I still miss our stand alone Dodge Dealer. It wasn't the biggest or the prettiest, but the service was top notch and the sales people were friendly and a pleasure to talk with. The guys at Clark Chrysler/Dodge/Jeep don't seem to want to talk to you at all, and the service people are not helpful at all.

I went in a could week ago asking them about taking the door handle off of the assembly and they told me that it couldn't be done, even though I know for a fact you can order the door handle by itself from them. <_<

Not to be pissy or sentimental but it seems like a lot of the good things are going away with our current economic bust.

Around here, most of the dealers are POS. Whiteside Dodge, in Mt. Sterling Ohio, is great. I was glad to see they are not on the list.

Chris

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Tri Star Motors is going out in our area. Funny thing is they already closed down a month or so ago...

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Harlan Auto Mart in my hometown will be closing, leaving a huge 50 mile radius of no Chrysler dealers in the area. Also, Ron Willey Chrysler-Dodge-Jeep in Ames and Nevada are closing, leaving another huge radius and eliminating a market of probably 200,000 people. And here in Cedar Rapids, our only Chrysler dealership is also closing, meaning you'll have to drive about 10 miles north to the small town of Center Point to get serviced. I don't know how a small town Chrysler dealership will be able to service an entire city of 250,000. I realize they are going for the underperforming dealerships, but they should also be keeping major population centers in consideration. From what I've heard, Mickey in Cedar Rapids wasn't that bad of a place. I also wonder how many mom-and-pop dealerships with great service are getting the axe in favor of the multi-line conglomerates where the customer is nothing more than a speck of dirt on their shoe. The people at Harlan Auto Mart were friendly and honest, and it will be sad to see them go.

Edited by mustang84
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we had an old dodge/plymouth dealership Hayes Dodge. it was the original building. my dad says he remembers seeing a Daytona in the showroom when he was a kid. The building itself is the shape of a pentagon. Dodge wanted him to demo it and build a new one and he refused so they revoked his dodge dealership now he sells used cars and still is doing well. thats been a solid 10 yrs. Happily it looks as though all three chrysler dealerships around here are safe, Big O dodge, Lake Keowee, and Piedmont Dodge/jeep/Chrysler/honda/nissan(and used to be an Eagle dealership too!)

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Well dagnabit I can't open the PDF. Could someone tell me if Lancaster Dodge, or Brubaker Chrysler-Jeep in Lancaster, are closing? How about Providence Dodge-Chrysler-Jeep in Buck, PA?
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None of the dealerships you've named are on the list, at least not under the names you've given.

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Lancaster Dodge Chrysler is on the list, Brubaker is not, nor is Providence.

The Lancaster Dodge Chrysler listed is in South Carolina.

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OK, sweet, thanks. I am worried about some small-town, mom-and-pop local GM dealerships, though... they're from an era where ppl did not travel much, so every small town had a dealership. Change like this is sad.
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The Dodge dealership is now an eerie ghost town. I drove by today and all their inventory was gone, there wasn't a car in sight. But its probably for the best, that dealership was all sorts of f@#ked up. One of the owners was found shot to death in one of the service bays a couple months ago, possibly a suicide, possible a murder, the police haven't been forthcoming with details. I know there was a lot of tension between him and the other owner.

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