AP Source: Chrysler to cut 800 dealers on Thursday

[steven johnson]

Source: Associated Press

DETROIT (AP) -- Chrysler LLC plans to fire up to 800 of its 3,200 dealers on Thursday, a lawyer seeking to represent the dealers said on a conference call.
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.
A Chrysler spokeswoman said Tuesday that the automaker is working to reduce the number of dealerships along with other restructuring actions. Spokeswoman Kathy Graham said the 800 number was just speculation.


Read more: http://hosted.ap.org/dynamic/stories/U/US_CHRYSLER_DEALERS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-05-12-18-41-46

[Ian David]

1. I hope they don't close the local dealer, Jesus Chrysler. n/t

[liberal N proud]

2. Chrysler outsourced all the design and IT then they wonder

they wonder why no one can buy their cars.

So the answer is to cut the number of dealers selling the cars. It is a spiral to the bottom.

Jobs cut, fewer people to buy your product forcing you to cut the production and outlets, forcing more people out of work, resulting is still fewer people to buy your product repeat....

[zerox]

4. This is all true.

But the American car companies also have way, way too many dealers, and have for quite awhile.

[high density]

6. My company did the same thing

We sell business equipment. At the same time we're outsourcing and/or offshoring everything for "costs" and they wonder why these other businesses have no money to buy our stuff. This is a nasty cycle.

[blue_onyx]

3. GM is expected to announce which dealers they will close on Thursday too

Sounds like Thursday will be a good day for the unemployment numbers :sarcasm:

[ohio2007]

5. Somehow I suspect there will be 800 new foreign car dealerships opening up around the country

just a hunch

[FarCenter]

7. The local Chrysler/Jeep store sells Isuzu and Subaru

The local Chevy store sell Hyundais.

So some will just be dropping the GM or Chrysler brands.

[Skink]

8. Uncovering cities all across the nation.

[Jester Messiah]

9. If this means less crappy dealer commercials, I'm for it.

:P