There's no easy to way to put it: Chrysler's bankrupt. The only way for the Auburn Hills-based automaker to emerge from bankruptcy is to make some drastic moves. Fortunately, filing for Chapter 11 allows a company to do drastic things without the same repercussions that a solvent company would normally experience. Chrysler took advantage of this fact yesterday when it announced the rejection of 789 dealers nationwide. That's about 25% of Chrysler's total dealer body, and the culling will leave 2,392 remaining dealerships to carry the load, 80% of which will house all three brands under one roof.
So what does this look like big picture? Thanks to modern technology, a.k.a. Google Maps, we can show you exactly what 789 dealers looks like, and you also can zoom in on your state or area to see exactly which dealers won't be selling Chrysler, Jeep and Dodge vehicles anymore. For its part, Chrysler is downplaying fears of out-of-work salespeople. As the argument goes, many of the dealerships losing their license to sell Pentastar products sell other brands as well, and some also make more money selling used cars than new.
Then there's Toyota. The Japanese automaker is reportedly going around to some of these rejected Chrysler LLC dealers and offering them the opportunity to switch franchises. We expect that some other automakers will jump on this bandwagon and pick up at least a few of the pieces of Chrysler over time, as well. Thanks for the tips, Travis and Steve!
[Source: The New York Times]