Friday, May 15, 2009

Chrysler Rejects 789 Dealers

As part of its bankruptcy case, Chrysler rejected one quarter of its dealership agreements under 11 U.S.C. sec. 365. Check to see if your hometown dealership is on the cut list. 2392 American Chrysler, Jeep and Dodge dealers will survive the sale to Fiat.

Here's what the axed dealerships heard in Chrysler's press release: “The unprecedented decline in the industry has had a significant impact on our sales and forced us to reduce production levels to better match the needs of the market. With the downsizing of operations after the sale and reduction of plants and production, similar reductions must be made to the size of the dealer body. We appreciate the support of our dealers and regret this painful action. We wish market conditions made it possible to keep everyone.”

In other words, "It's not you, it's me."

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