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Thursday, May 14, 2009
Chrysler Sends Out Termination Letters to Dealers
By Kathryn Elizabeth Tuggle
FOXBusiness
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The fate of the Chrysler dealers has been decided.
Following an announcement last week stating that numerous Chrysler dealerships would be closed, the company has finalized plans to eliminate 25% of its dealerships across the country -- a total of 789, according to documents filed in Bankruptcy Court in New York on Thursday.
As part of Chrysler’s restructuring process, the company has determined a need to streamline its dealer network of around 3,200. Fewer dealerships, the company says, will lead to stronger individual facilities. The facilities that have been closed were among the “weakest” on the Chrysler roster after factors including sales, market share and location were taken into consideration.
In a statement filed in court, Chrysler Director of Dealer Operations Peter M. Grady said that the cuts were necessary for the company to begin making production changes.
“It is critical that the Domestic Dealer Network be reconfigured quickly to create a dealer network that improves the profitability of the best dealers in the best locations,” Grady said.
All Chrysler dealers will receive letters in the mail starting Thursday that were overnighted to arrive early in the morning. The majority of Chrysler dealers will get a letter that details plans for improvement, not closure.
The letters were sent approximately two weeks after Chrysler filed for Chapter 11 bankruptcy. Below is the list of dealers who will receive termination letters.
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