Chrysler To Axe 800 Dealers Tomorrow

The lawyer, Stephen Lerner, who heads the bankruptcy and restructuring practice of the law firm Squire Sanders, told dealers on the Tuesday call that the automaker plans to reject at least 800 franchise agreements, according to a dealer who listened to the call.

Chrysler will file a list of dealers it wants to retain with the U.S. bankruptcy court, said the dealer, who asked not to be identified because the call was confidential.

pageman - 5/13/2009 11:53:16 AM

0 Boost

OFF WITH THEIR HEADS!!!!!! (cheers from the crowd) (rahhhhhhhhh!!!!!!)

moneymouth77 - 5/13/2009 11:54:47 AM

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So much for Chrysler managing its assets... it's all going downhill from here!! One can only hope that Pontiac was worth 800 dealerships.

fatandsassy - 5/13/2009 12:32:22 PM

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Some need to go! The local one in my town is of no use to me. I have a 2008 Jeep and luckily the Cadillac / GM dealer has that franchise and I hope he keeps it. They are a top notch dealership. I do not like the local Chrysler / Dodge dealer.

RaulT - 5/13/2009 1:29:54 PM

+2 Boost

that's a whole bunch of stores they have there.....the remaining ones will become a bit more profitable with less competition

bfghemicuda - 5/14/2009 6:24:09 PM

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That is actually what is happening to my dealer. There very busy and profittable

bfghemicuda - 5/14/2009 6:24:52 PM

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sorry Profitable

topneuro - 5/13/2009 2:10:27 PM

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Too many American brand USA dealers have always been a problem. GM plans to reduce the number of dealerships by more than 40% by the end of next year. That means 2,600 of GM's almost 6,300 dealerships in USA will close. Toyota only has approximately dealerships 1,500 in USA.

topneuro - 5/13/2009 2:17:26 PM

+1 Boost

In the "good days", circa 2007, (Toyota's 1,445 existing stores in 2007) the average Toyota dealership sold over 1,800 vehicles per year, which is about three times as many sales as the typical Ford dealership.

PlanB - 5/13/2009 2:34:29 PM

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I think this is what I would call shaving the fat.

Anthony - 5/13/2009 4:31:18 PM

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I bet Hyundai will buy alot of the vacant lots.

NISSANINFINITI - 5/13/2009 5:08:29 PM

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i have to AGREE with that!

commander104 - 5/13/2009 6:27:00 PM

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my former local dodge dealer is combined with a hyundai dealership so they should be ok. Clear out the space for the Genesis brand.

philippz - 5/13/2009 7:54:50 PM

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My friend who manages a Chrysler dealer says that if he gets axed, not much will change since the large majority of their sales and income is in used cars. So they will just continue selling used cars. No big deal! I don't understand why the media is saying that all these car salesmen will be out of a job when the manufacturer cancels the dealer's contract. They will continue doing what they used to - sell used cars.