Sunday, May 17, 2009

Closing Dealers: Chrysler to close 789 dealerships, and GM to close 1,100 dealerships

With Chrysler into deep Chapter 11 bankruptcy filing, they also want to cut costs as most possible as they could. Well, it seems they're going to have a lot fewer dealerships with their allince with Fiat. Chrysler LLC Group sent a total of 789 dealerships an overnight letter indicating that they are being closed down as a part of the company’s bankruptcy. Under the new plan, which is subject to review by the U.S. Bankruptcy Court judge, the 789 dealers have until June 9 to close their stores. Nevertheless, there's still 2,392 Chrysler, Jeep and Dodge dealers that got the approval to continue to operate under the global allince with Fiat.

Over at General Motors, their annoucement and judging from the Auto Task Force at June 1rst that will decide their future, GM is trying to cut anything that isn't necessery. GM is even selling Saab, Saturn and Hummer as well. Part of the cut-costing job, goes the poor GM dealerships, or the ones at are close to each other. It is reported that GM sent letters to 1,100 dealers to close their jobs, and not renewing their contract.

However, with massive lost jobs, Senate and the House of Representative officials told reporters that Congress may jump-in to help those dealers that are being notified that their contracts with GM and Chrysler will not be renewed.
Source: [Reuters]

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