789 Chrysler Dealers to Close By June 9

Today, Chrysler told 789 of its dealers — roughly 25% — they would be eliminated from the company's dealer network. That would bring the total number of Chrysler dealers to just over 2,400, which is still twice as many as Toyota's 1,200. In 2008, Toyota outsold Chrysler 2,217,662 to 1,453,122 in total units.The company says that the 789 dealers accounted for 14% of its total sales.

Owners who purchased vehicles from any of the 789 closing dealerships will receive notices about where they can get their vehicles serviced after June 9. Chrysler will not have to buy back inventory, parts or tools from the closing dealers, but says it will connect closing shops with healthy ones that will buy up those items.

The eliminated shops will get a chance to fight the closings in bankruptcy court from today through June 9.

Many analysts suggest that the relative ease with which Chrysler is closing the dealerships is a benefit of the company entering bankruptcy. The move also likely means GM would look to bankruptcy to help shed a large chunk of its 6,400-dealer network.

A PDF listing of all the contacted dealers can be found here.

By David Thomas | May 14, 2009 | Comments (49)

Comments 

ermatthe

How does eliminating dealers help to save Chrysler or GM money?

Seems like the only ones to benefit financially would be the remaining dealers when their competitors in the next town over is elimitated.

Ziggy

Dave -
Did you have to mention Toyota in your article? Now we'll see the flood of comments about how you favor foreigns over domestics and all the Toyota and domestic bashing. Way to go Dave.

Broq

I am sure these are tiny dealerships anyway. It sucks that people will lose their jobs, but business is business. The town that my parents grew up in had a Ford dealership that only had about 20 cars on the lot at any given time- a remnant from a different time I guess.

broq

Ziggy,
I mention Toyota because GM especially acknowledges how they sell so many cars with such a small network. All 3 domestics have been trying to consolidate for years to compete with them on that level.

Ermatthe,
Theoretically Dealers don't cost the companies anything. However, having them too close to each other could force them to compete with each other for the same customers and lower the sales price of the cars. More dealers = more training, more marketing materials etc.

There are definitely costs to be saved.

cb

They need to cut more but it's a start. Sooner or later these dealerships would go out of busisess anyway. If people aren't buying, how are you going to pay the bills(exlcuding bailouts). Its supply and demand. Too many automobiles produced, not enough buyers and that goes for all of them.

Crim

Just checking through the list, many of the dealerships look really small. It also looks like they are getting rid of larger dealerships where there are multiple stores in one area.

Zerf

Dave, thanks for mentioning Toyota's number of dealers. Interesting since I can name maybe one Chrysler dealer left open in our area. I could name at least 6 Toyota dealerships all within a 25 minute drive and can think of more beyond. I would have never guessed Chrysler had over twice as many dealerships, that is amazing.

Maybe Chrysler is hiding them? Maybe that is one of their problems? :-) Maybe Chrysler gave up on MA a decade or two ago.

broq

In the houston area a lot of the chrylser dealerships are in some odd areas. Either too far north/south/east/west and in one case, not visible from the freeway. Another that I can think of is along the freeway, but not visible because that part is elevated. I don't think the dealership location is something that is planned on by the automaker- but I think it does make a big difference.

broq

Bowrider

What about Scion and Lexus dealers? Are they included in the number of Toyota dealers? I believe Chrysler is counting all of its dealers, regardless of whether or not all three brands are sold at the location.

broq

I don't think there are any stand alone scion dealerships.

Broq

Adrian

I just saw on the list that my local dealership, Wilson Dodge is closing. This is very shocking to me since they are the oldest and most recognized Dodge, Chrysler, Jeep dealer in the metro. This is really sad because these are great people with excellent service.

Manatee

This is a dismal discussion. How about some interesting posts about CARS?

M3

Sad to see this happen. Expect a huge wave of bankruptcies from the dealers going out of business. Hurts to think about all of the staff, including mechanics, parts guys, office staff, salespeople, etc losing their jobs, and not being able to find new ones. Countless families devastated.

Tony

M3,

Here is alternative for you:

-YOu go to work
-the dealers, all their employees get federal support paid out of all our tax money.
-next - banks (already there)
-then - other companies.
Final product: Full blown socialism. Is this what you want?
This is annoing to hear people crying. Get over it. America is known for people creativity. Surelly, it will not take long for most people to recover. Nothing is forever. Not your job ant not you.

Juan Carlos

two in my area. one is a very small one that is part of company that owns tons of foreign dealers. the other is huge and sad to see it go.

Al G.

@M3 Your right. Cars Companies are big business and a lot of services and jobs depend on their success. When they fail it hurts the economy, jobs and peoples livelihood. While I have never been much of a Chrysler fan I still recognize and empathize with the effects of Chryslers going bankrupt.

Adrian

There was an interview on the news this evening with the owner of the dealership that is going to be closed in my area where I learned that the DCJ dealership they competed with in my area is factory owned. So, instead of closing their own, they choose to close a successful franchisee. That's #$@?ed up IMO! Fortunately, his employees will be absorbed into his Hyundai and Kia dealerships next door so no jobs will be lost.

Dave

I think all of the dealers being forced out of business should start a class action suit against Chrysler.

I used to work at one of the closing dealerships. I think this is one of the most chicken **** things Chrysler could do. These are all independently owned and operated, I don't see how this is going to affect Chrysler’s bottom line at all. It just going to force good people to the unemployment office, and make the remaining dealers more money.

It's like going to a big corporation and having a small but meaningful concern. You know they are busy and could care less about your concern.

I can envision the remaining Dealers are not going to be fun to have your car serviced at, busy service drives and understaffed dealerships.

Has anyone thought of the impact of setting the precedent, that this is OK?

40,000 people almost instantly unemployed in the worse economy in history, nearly 800 empty Dealerships across the country. I am afraid this could cripple the US on the brink of what could have been a turnaround point now looks like a breaking point.

These 40,000 employed people had houses, car payments, and productive members of our society now they could be on the brink of unemployment, foreclosures, repossessions etc. These people worked in this industry THIS INDUSTRY IS NOT HIRING NOW, these people have no place to go get another job.

Nice Job Chrysler, I as an American will never buy another Chrysler product again, THANKS for turning your problems into OUR problems!!!

Tony

I can't believe, some people think that something is forever. Forget about Chrysler closing dealerships. What if they are gone for different reason? People must re-train. Mechanics will have no problems. Office workers over there don't make much anyway. They can find similar salaries. Salesmen... In America there is something to sell all the time. Only the top managers are really the big loosers. They would really need to adjust.

DodgeFan

I understand the closing of the old stand alone Dodge dealerships. Two of this type in the Indianapolis area are closing. But some of the ones that are being closing are the Dodge Jeep Chrysler stores. So they are combined. I hope my local Dealership picks up more Korean or Asian brands. Truly disappointing, I believe natural selection would continue the closing of inefficent DCJ stores. NADA indicated its lawsuit time so the bankruptcy process might of just got ugly.

Original sheth

Tony:

Just be quiet. Please. Your comments are no help to the 38k people who are about to be out of work. TO say there is always something else to do in American during a recession where unemployment is at 9% is the height of stupidity. Why don't you quit your job if you think this is a great time to be "creative" and find new work. This is the worst time to find new work.

What ever may be the reason for dealership canceled but the dealers should be brave to continue.

Derrick G

I know this sucks for the dealers affected. But these dealers account for 25% of the stores, but only 14% of the sales. It's part of business. They closed the call center where I used to work and sent it to the other side of the state because that center's sales numbers were better. Happens all the time.

A large percentage of these folks sell other lines or have other CDJ stores nearby. The one dealer near me is also a Ford dealer that at one time had Olds, too. Paper said he had 6 Jeeps on the lot; sold 50 Jeeps per year tops. Certainly, some of these store closing will force people into bankruptcy, but obviously Chrysler can't support all of them.

Oh, is Korean not Asian? Anyway, some of these stores are too rural and I don't think imports would do well there, but smart money says Hyundai, Kia, and Subaru are studying this list carefully, looking for new markets.

Bowrider

This is unfortunate for the employees of the dealerships. But, business is business. You can't expect to stay in business when you are losing money. It's ignorant to think that Chrysler shouldn't be doing this. The franchise contracts are what stopped them from doing this in the past. Not everyone can get handouts. That's the problem with the way so many people think in today's America. It's embarrassing the way this country is being run today and embarrassing that people can actually sue Chrysler because they don't have a job at a dealership that was losing money. Business is about profit, not loss.

Bill

the big three long ago drove themselves toward
ruin when they raised the cost of a car to the price of a house. It took longer than I expected but there is just so far you can push anybody before they push back.

puzzeled

Nobody has answered the question: what does it cost Chrysler to keep a franchised dealership?
The dealer buys their cars on the lot from Chrysler and they buy the parts from Chrysler on their shelves. The dealers contribute to any advertising campaigns Chrysler has.
So what does it really cost Chrysler to have a franchised dealer?

Original sheth

Bowrider:

The dealers are not necessarily money losers. You are totally misunderstanding the process here. Chrysler is eliminating its weakest dealers in order to strengthen the strongest dealers in the hope that they will be able to better compete with the imports. This has nothing to do with losing money. Any car dealer who has been losing money for years is ALREADY out of business. These dealers essentially have little say over this situation and if they ended up the list they stand to lose lots of money due to investments they have made into their franchises. Chrsyler wouldn't know about the profitability of each indepedent franchise, its none of their business.

Puzzled:

dealers dont cost Chrysler much of anything. The whole point is to increase proifitability of remaining dealers and hopefully reduce the need for Chrysler dealers to battle each other on price and focus on the competition. It might work or it might not.

hmmm...

Bottom line: It's a political and cosmetic move. That's it. No real benefit to ANYONE (except the remaining dealers.)

Customers will pay more for the vehicles too since the competition's being widdled down.

Tony

Original sheth,

I don't know what you are really talking about?
Do you know that thousands of people come to America from other countries and make it good in here. Better then many Americans. Only people themselves are in their own way to prosperity. If they envision a job at the dealership as the only thing they can do then they deserve lose their job. Actually, I am glad that we have people like this. It opens ways to me and others. 9 percent unemployment? Ha-ha. I will walk now in any pizza shop
and pull out a few amigos without any documents. These are places that could be occupied by Americans.
Stop complaining. Start working. Often, the job loss is an opportunity to look at the world from the different angle and start something new.
Yes. For most, it is the reason to go to a bar and get drunk. So let them be that way.

Original sheth

Tony:

It is impossible for every able bodied person to be working at the same time. Someone always has to be unemployed. when the economy isnt expanding you can rest assured its a terrible time to be "creative" in terms of starting a business or finding a new line of work. Almost every sector of the econoomy is contracting right now so your assertion that these people should just retrain and jump into a new line of work is silly. A lot of people come to this country and work jobs that dont even pay legal wages. Those jobs and the pay are not desirable to Americans for the most part. Recent reports state that immigration from Mexico is on the decline due to our stale economy. I would love to live in your fantasy world where being laid off is a mere inconvenience that can be overcome with a positive attitude. All kinds of people have been out of work for many months. Folks with multiple degrees and impressive credentials are struggling to find work in this economy. Again, try quitting your job and testing out this "hot" market for yourself.

H

So I should direct the 400+ teachers being laid off by the local school district to their closest pizza delivery joint? Where do I tell the 1000's of banking employees who've been downsized to go? I guess bartender school since the bars must be overflowing with all the unemployed folks who supposedly choose to do nothing but drink.

Tony

Original sheth,

I know many people, who lost their job in the last 8 month and found another. I am talking of highly professional jobs.
These individuals are focused, professionals and enthusiasts. Each of them had a new job within a month.
And above I talked about foreigners, who come here and take good jobs and open businesses, not some lawn workers.

H.,

I like the style. Really cool. Almost makes sense. Almost.
1000s of banking employees, huh?
Well... In Phila they are 70 people short in the department of corrections. And the starting salary is 43K. I just solved a problem for 70....
Again. This is capitalism. There are cool fields and hot fields. In the beginning of 2000s many software people had to leave the field because competition was stiff. Schools stopped producing software engineers in the quantities they were in the end of 1990s. But in 5 years after that, the field again became hot. In this country it is happening all the time. No job is ever safe unless you work for yourself. Each individual must be ready for it and must have open mind and understand that one day he might work in the different field unless he wants to fight for the specific career.
My friend is physicist. 2 time Phd. Lost a job with electronics company moved to China. Quickly found job in the university, which was related but lower grade, while continued to look for a real job. Year later, he works on his lovely nice job. He didn't give up. He had temporary solution while continued his search.

I lost my job 3 days after 9/11. Things already were dark in my field and that hit just made it worse. In 1/2 year I worked my behind in non-field to feed the family while getting additional training. Took me almost half a year but I got the job and I was new and improved guy over there.

Gators

I worked for Chrysler for 11 years, The morale is terrible there and has been since 2003. I am not suprised that they are bankrupting. I have worked with good people, but "BAD MANAGEMENT" and awefull decision making all of the engineering talent left when they offered the buyouts last year-end 2008.
I feel bad for the UAW membership because they are going to be left holding the bag...

Carma

Sheth, you're wrong and Tony is right. Keep your half-baked economic theories to yourself. The simple fact is the gravy train is over, and now people are going to have to produce something of value. As somebody else on this posting stated this is just business.

Texian

Yeah right, a lot of schools and prisons and other places need people, but they don't have enough staff... but they don't have budget to hire anyone... or substitute the ones who retire, that happens a lot in school districts..

Original sheth

Carma:

Thanks for getting me straight on "half baked" economic theories. Tony is right, anyone who wants a job bad enough can get one in a month. There is no recession, unemployment is low and the economy is thriving. I don't know what I was thinking. All you have to do is want a job bad enough and a good paying job will appear. I hope Tony is getting the word out. Miraculously everyone that he knows that has been laid off has found employment easily within a month and that means it should be that way for EVERYONE. The 4-5million who have lost jobs in the last year or so are really not trying hard enough to find work. WHo knew?

Tony

OS,

just yesterday I had a 1/2 hour conversation with a person, who lost his job in the pharma marketing field. He is selling his house in PA and is moving to Florida where he is opening his business.
OS, people with open mindnes to adaption to new conditions will find jobs. There are jobs somewhere there in America, always.

Original sheth

Tony:

There are some jobs for some people. Everyone from lawyers to construction workers to stock brokers are being laid off right now. No, there is not a job available for EVERYONE who is laid off. If there were there would be no recession or 9% unemployment rate. This is just common sense. Some are fortunate enough to find a new job, but many aren't finding anything- regardless of qualification.

Tony

OS,
there never will be 100,000 immediate openings for 100,000 laid off construction workers. But if 5,000 of them will be willing to become X-ray technitians, the 5,000 people problems can be solved...
9% is not an unemployment rate. This is rate of people who receiving unempoyment benefits. Unfortunately, many of them will waste their time and not prepare for the future jobs.

Original sheth

You are right Tony, the unemployment rate is higher than 9% because it doesnt count people who have given up searching for a job and lost their benefits. Its really well over 10%. You cannot become an xray technician without appropriate schooling- which costs money and takes time. In the meantime you still have expensese which could make changing careers overnight somewhat difficult. If it was as easy as you claim EVERYONE would be doing it. trust me.

charles

i am part of the eliminated chrysler dealers .we were busy and very professionals on a couple hundred cars lots.I am sure chrysler use the and save their own jobs first .I am still baffled by their decision ...............i feel sorry for the tousands of customers that we care for !!!!!!!!!!!!!!!!!!!!!!!

dd

As an employee of one of the affected dealerships, most of the information being blogged here is inaccurate.
First, this isn't just Chrysler's decision. They were forced into bankruptcy by President Obama. When Chrysler emerges from bankruptcy the Federal Government will be a junior partner in the new Chrysler. This is SOCIALISM! Wake up people! This isn't about business it's about politics and control. My dealership is in the top 125 out of the 3500 plus dealerships nationwide...yet we are on the list. We are not small nor are we rural. We are in a large major metropolitan area. Our new vehicle inventory alone is well over $4.0 million. Is that small?
Secondly, Chrysler is already "shopping" for dealers to take over the open "points" (another name for franchise) left by the closed dealerships. Again, you think this is just business.
Lastly, and more importantly, every state has franchise law in affect that protect companies from this very thing - being forced out of business under the cloak of bankruptcy with out the benefit of due process. This is illegal!

This is so much more than "just business". This is about control and power by our present administration in Washington. An administration that will stop at nothing to bring complete Socialism to this once great country. Wake up people or get in line now to "drink the Kool-Aid".

Did anti-Obama campaign contributions dictate which Chrysler dealers were shuttered?

http://directorblue.blogspot.com/2009/05/red-alert-did-campaign-contributions.html

Alan

CoryJ

You hit the nail on the head. These closing have nothing to do with how the dealerships had performed but who the dealerships contributed to during the last election cycle. This clown in the White House couldn't be more blatant in what he is doing yet the ignorant mass media are giving him a free pass on what he is trying to do and getting away with.

http://www.worldnetdaily.com/index.php?fa=PAGE.view&pageId=99325

Now he has appointed Sonia Sotomayer who has connections to La Raza the group that wishes to take back a third of our western states for Mexico.

http://www.abanet.org/publiced/hispanic_s.html

There may be nothing left to this country come 2012.

PointingOuttheObvious

It comes as no surprise to see the far-right wing extremists turn the dealership closings into an imaginary tale of hard-right partisan politics based loosely on material supplied to them from equally radical websites. It's quite easy to believe the lies if you are unable (or unwilling) to think for yourself.

Thankfully, there are rational people out there debunking the Republican Party's latest talking points of the day; rational people who can do the basic fourth grade mathematics that show the talking points are nothing more than a childish whimper from a party vastly out of touch with reality. As it turns out, car dealerships contributed to the Republican Party over the Democratic Party by a margin of 88% to 12% in terms of campaign contributions. It should come as no surprise that the majority of dealerships closing are indeed owned by Republicans as pointed out by the fact that 92% of the money from the closed dealerships went to the Republican Party. That's well within the margin of error given the sample size. This is not a conspiracy as the far-right wing would have you believe (and are oh so willing to believe themselves).

This is simple statistics and basic fourth grade mathematics.

NuffSaid

Hey Chrysler, you now part of the 'Messiah's plan to wreak socialist havok? You took the bailout, you also are the least compassionate to people trying to make ends meet when we are ALSO having financial problems. WE don't get a bailout, we have to 'suck it up'. As far as I'm concerned, you can come pick up my car and stuff the balance where the sun doesn't shine. You got my money in the bailout, I'm broke and facing unemployment. You still have assets, I'll be homeless. Rich fat smirking jerks head of companies, I hope you choke on every last cent of that bailout.

Obamunist

That 75-88% figure was derived from searching by car dealer or auto dealer. Both search yield only a small percentage of the total number of car dealers in the US. Which means nothing since many of the ones on that list are non US or Ford dealerships. Nor does it take into account profitability of the dealerships. GM and Chrysler should simply release a full dealership list with relevant data such as sales dollars and units and their rank in the overall dealer network. You cant just look at total contributions since a few dealers who make huge contributions can skew the numbers.

bcorp

Kool-Aid drinkers will not wake up unfortunately. What is happening is so obvious to any logical thinker. Destruction to the American way of life is at stake. Work hard, build a business, and at the whim of Obama it's all wiped out and will be replaced by one of his chosen. This is going beyond socialism, and against all of our beliefs as a society. He has been given a chance to show what he can do for our country, but the consequences now have far reaching negatives.

Post a Comment 

Please remember a few rules before posting comments:

  • If you don't want people to see your email address, simply type in the URL of your favorite website or leave the field empty.
  • Do not mention specific car dealers by name. Feel free to mention your city, state and brand.
  • Try to be civil to your fellow blog readers. This blog is not a fan or enthusiast forum, it is meant to help people during the car-buying process and during the time between purchases, so shoppers can keep a pulse on the market.
  • Stay on topic. We want to hear your opinions and thoughts, but please only comment about the specified topic in the blog post.
view posting rules

If you have a TypeKey or TypePad account, please Sign In

Search Results

KickingTires Search Results for

Search Kicking Tires

KickingTires iPhone App
Ask.cars.com