Chrysler Delays Dealer Payouts

American manufacturer Chrysler announced it will delay payouts to the 789 dealers awaiting termination for an undetermined period of time. According to Chrysler, an email has been sent to the respective dealers, saying that it will not make incentive and warranty payments until "sometimes after June 28."

"We originally expected we would have reconciliation done by end of this month," an unnamed Chrysler official was quoted as saying by Autonews. "Because we hadn't been through bankruptcy before, we underestimated the complexity. We very much will pay all the old dealers the monies due to them."

In mid-July, Chrysler announced its new line-up of dealerships, now comprising of 2,385 dealerships, 1,364 of which in rural communities, 592 in metro areas and 429 in secondary markets.

The 789 dealers to be terminated more than 50 percent of them are still in business, selling other brands. The company says it has launched a job-posting function to match displaced dealership employees with remaining dealerships. Chrysler's data shows that until now, 239 dealerships have hired 436 displaced employees, while 202 open jobs are available.

Both Chrysler and GM now face a piece of legislation which, if passed, would mean the resurrection of the terminated dealers. A good news for them, a bad news for Chrysler, which warns that the law may throw it into "complete liquidation, with all of its dire consequences could follow."

According to the provisions of the new bill, the dealers would return to their previous status and will have to be taken to court by the manufacturers if they are to be closed.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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