Chrysler Dealer Closings: What Does It Mean?

Chrysler will soon be closing almost 800 of its dealerships.

Those on the chopping block represent almost 25 percent of the company’s dealers, the Detroit Free Press reports. “Some of the 789 dealerships slated to close have survived world wars, recessions and Chrysler’s 1981 federal loan guarantee. Many are family owned.”

The company selected which dealerships to close based on “sales volume, customer service scores, local market share and average household income in the immediate area,” according to the paper.

Some may try to stay in business, the Free Press reports, by selling used cars and offering auto services.

And now that the company has announced it wants to close the dealerships, it has to sell the 44,000 vehicles they have “without driving prices to fire-sale levels for remaining dealers.” That sounds like it could be difficult.

-KG

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Filed under Featured, U.S. Auto Industry

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