Chrysler axes Le Center dealer
Only dealer in region dropped by automaker
By Tim Krohn
The Free Press
He said that besides dealerships closed by Chrysler, other struggling dealerships may go out of business. That’s because Chrysler is ending its financing arm that helps dealers with cash flow to keep their inventory. “Those dealerships that are weak might have trouble finding financing somewhere else,” Nibbe said.
The largest number of dealer closings are in Florida, California and Texas.
Chrysler, which filed for bankruptcy protection two weeks ago, has 3,200 dealers.
Some dealerships on the closing list could be saved by rulings from Chrysler’s bankruptcy judge or if other dealers decide to sell their franchises.
Chrysler said it needed to eliminate dealerships so that it can be viable in the future and the remaining dealers can be more profitable.
Today 1,000 to 1,200 General Motors dealers are expected to receive notices that they are being cut. Their franchises will expire in October 2010, G.M. spokeswoman Susan Garontakos told The New York Times.