Thursday, May 14, 2009

Chrysler seeks to eliminate 789 dealers, 40 in Michigan

By slashing 25% of its dealer network, including 40 in Michigan and 14 in metro Detroit, the restructured Chrysler-Fiat will eliminate up to 40,000 jobs or more than Chrysler’s total U.S. work force.

In a court filing Thursday, Chrysler asked U.S. Bankruptcy Judge Arthur Gonzalez to reject dealer agreements for 789 dealers throughout the U.S. in a effort “to conserve cash and pursue transactions that maximize value.”

Locally, Chrysler is asking the judge for permission to close 14 dealers including Birmingham Chrysler-Jeep in Troy, Fox Hills Chrysler-Jeep in Plymouth, Meadowbrook Dodge in Rochester Hills, Mt. Clemens Dodge in Clinton Township, Lochmoor Chrysler-Jeep in Detroit and Tamaroff Dodge in Southfield.

Chrysler has signaled its intent to shrink its retail network since filing for Chapter 11 bankruptcy protection on April 30. In 2008, Chrysler’s 3,298 dealers sold on average 303 vehicles per showroom, compared with 1,292 for the average Toyota dealer and 1,219 for the average Honda dealer.....More

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