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AutoBlog: Dealer Bailout: Chrysler to redistribute all new inventory

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Filed under: Government/Legal, Chrysler, LLC., Earnings/Financials


After the suggestion of Congressional hearings on the matter, Chrysler's Jim Press assured Senator Kay Bailey Hutchison (R-TX) that Chrysler dealers with leftover inventory after June 9 would "receive a fair and equitable value." It appears that Chrysler is making good on that promise.

The company's head of sales, Steven Landry, outlined the measures being taken to relieve shuttered dealers of their wares and remunerate them for it. Of the 42,000 cars held by the 780 dealers whose franchises were nixed, 26,000 of them have been sold. The rest, save for 220 cars, have been assigned to be moved to dealers that are still in business. Those last 220 cars are in the possession of dealers who haven't yet agreed to Chrysler's plan, but the cars already have new dealer homes waiting if and when things are agreed.

As for payment, after the cars arrive at their redistribution point, the new dealer's finance company will pay off the old dealer's finance company for an inventory acquired, save for $350 in destination fees. All else, according to Landry, including holdback and advertising funds, will be repaid. There is at least a little good news to start the week...

[source: Automotive News, sub. req'd | Photo by Scott Olson/Getty]

Dealer Bailout: Chrysler to redistribute all new inventory originally appeared on Autoblog on Mon, 08 Jun 2009 17:27:00 EST. Please see our terms for use of feeds.

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