Chysler Closing 789 of 3,200 Dealerships

Chrysler added that it dealership network is antiquated and has too many stores competing with each other. Dealership closings of the low-performers would streamline things for the automaker, which entered Ch. 11 bankruptcy recently.

Those dealerships affected by the Chrysler closings, as well as those "safe," were informed on Thursday morning via UPS delivered letters. According to reports, howver, the moves can be appealed. One can imagine that communities affected by the closings could face financial devastation.

Appeals can be made, however, to Chrysler’s bankruptcy judge, and some dealers may be saved this way or if other dealers decide to sell their franchises. A full list of the Chrysler dealership closings is here (.PDF).

On Friday, over 1,000 GM dealers are expected to receive notices that similar notices. Meanwhile, officials from the National Automobile Dealers Association (NADA) are meeting with members of the Obama administration’s auto industry task force Today. The NADA is urging the task force to let GM and Chrysler keep more dealerships. About 150 dealers flew to Washington on Wednesday to plead their case with members of Congress.

John McEleney, the NADA president and owner of two G.M. dealerships in Iowa, said:

“We’re not objecting to consolidation. We understand the realities of the marketplace. The situation’s going to get taken care of by natural market forces. To radically accelerate the process doesn’t seem to make sense in this environment.”