Chrysler moves to eliminate 789 of 3,200 dealers

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May 14, 2009

Anonymous The Daily Independent Thu May 14, 2009, 12:27 PM EDT

NEW YORK — Chrysler LLC has told a bankruptcy court it plans to eliminate 789 of its dealers — or about 25 percent of them — across the country as part of its restructuring process.

The automaker has about 3,200 dealers but says that’s too many. It wants to have stronger, more profitable dealers with better facilities.

Chrysler spokeswoman Kathy Graham says the company will notify specific dealers before commenting publicly.

The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the U.S., costing jobs and tax revenue.

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