Confirmed: Chrysler Kills 789 Dealers!

Chrysler is now rejecting no less than 789 US dealerships

Chrysler today announced that it has filed a motion with the US Bankruptcy Court to reject almost a quarter of its US dealerships as part of the reorganization process it started on May 1. The American company says that 2,392 Chrysler, Jeep or Dodge dealers will continue operations along with the "New Chrysler" - the new entity formed following the discontinuation of several brands and based on the strategic alliance with Fiat.

“We are in the process of revitalizing Chrysler's business to succeed as a viable enterprise under new ownership in the future,” said Jim Press, Vice Chairman and President.

“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.”

Obviously, this can only be bad news for both dealerships and the NADA (National Automobile Dealers Association). As a result of this decision, no less than 40,000 people will be affected. Still, this doesn't necessarily mean they will lose their jobs immediately, because dealers will still keep their doors open but only to sell the remaining models in their showrooms or used vehicles.

"The review was an objective and rigorous process that was both thoughtful and thorough. We plan to work to have an orderly transition. These are extraordinary times, and they call for an extraordinary response. It is important to our dealers and to our customers that these steps be completed quickly and seamlessly as we transition to a new Chrysler,” Steven Landry, Executive Vice President, North American Sales and Marketing, Global Service and Parts added.