Thursday, May 14, 2009

Chrysler Will Close 789 dealerships

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Chrysler will cut 789 dealerships in an efforts to rebuild and rebound the company in this difficult economy. The news comes after Chrysler filed for bankruptcy early this morning.

Chrysler recommended that 40 dealerships in the state of Michigan be closed and 15 dealerships in the Metro Detroit area.

Jim Press, the Vice Chairman and President made a statement in response to the automaker's actions. "We are in the process of revitalizing Chrysler's business to succeed as a viable enterprise under new ownership in the future," said Press.

He also said,"The unprecedented decline in the industry has had a significant impact on our sales and forced us to reduce production levels to better match the needs of the market. With the downsizing of operations after the sale and reduction of plants and production, similar reductions must be made to the size of the dealer body. We appreciate the support of our dealers and regret this painful action. We wish market conditions made it possible to keep everyone."

The Michigan dealerships recommended for closing will be heard by Judge Arthur Gonzalez at 10:00 a.m. on June 3 in a hearing. The judge will decide whether to accept the list of 40 filing names. For more information click on the links below and the video.
Detroit Free Press:
WXYZ News- Channel 7:

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