Chrysler dealers across America are waiting for a letter from UPS to arrive today that will tell them whether or not they are being shut down. The company plans to shut down toughly one quarter of Chrysler 3,200 dealerships in the US.
The company made its plans public in a a bankruptcy court filing today, saying that its network of dealerships is antiquated and oversized, with too many dealerships competing with eachother.
The filing portrays a bleak picture of Chrysler’s dealerships. About 90 per cent of Chrysler’s sales come from just about 50 per cent of the dealers. The other 50 per cent make just 10 per cent of the sales.
Dealers are expected to appeal the plan, both in bankruptcy court and under local regulations intended to protect dealers. Politicians represpenting areas with dealerships set to be eliminated will no doubt raise a cry against the devastating economic effects to their constituents.