Chrysler to Cut 25% of Dealerships

May 15, 2009

In a follow up to a recent blog discussing the possible closure of hundreds of dealerships across the country, Chrysler announced today that they are looking to eliminate nearly a quarter of their dealershipsby early June.

In a motion filed with U.S. bankruptcy court, Chrysler said that 50 percent of dealers account for about 90 percent of the company’s U.S. sales.

Dealers were told Thursday morning through letters delivered by UPS whether or not their stores would remain open.

The ripple effect of this move along with possibility of GM doing the same in the coming weeks could be one of the most visible effects of the country’s economic troubles as thousands of jobs will be affected across the nation.

Chrysler said its dealer network “needs to be reduced and reconfigured in a targeted manner to strengthen the network and dealer profitability and to achieve optimal results for the dealers and consumers.”

Companies with fleets that fall under Chrysler will be glad to know that the automaker announced that the company will be notifying over 3.5 million customers of franchises affected by the closing, that their vehicles will remain covered under whatever bumper-to-bumper and powertrain warranty issued at the time of purchase and that it will be honored by remaining certified Chrysler dealers.

Today’s business section at MSNBC.com features a complete list of Chrysler dealers the automaker is looking to shut down.

It might be worth a look to see if your fleet will be affected.

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