Chrysler Axes 789 Dealerships

By Jeralyn, Section Economy
Posted on Thu May 14, 2009 at 06:22:45 PM EST
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Give your car dealer a hug today. This can't be good news for Jeep owners, of whom Colorado has more than its fair share, including me. As part of its bankruptcy plan, Chrysler notified 789 dealers across the country today it is terminating their relationship.

I'm really glad my dealer isn't on this list (pdf). But more closures could be coming. [More...]

I started buying Jeeps in 1988, switching from Mercedes. I've bought a new one every three to five years and never had a bad one. I've even stuck with the same dealer through several ownership changes. My latest has only 4,000 miles.

GM owners are facing the same prospect.

General Motors Corp. CEO Fritz Henderson said Monday that GM would begin late this week notifying dealers who will be closed as the company cuts its U.S. network by 50 percent.

Update: Some answers for car owners on what to do and what it means if your dealer is on the list.

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Chrysler Axes 789 Dealerships | 15 comments (15 topical)

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But the economy is looking up (5.00 / 1) (#2)
by Dadler on Thu May 14, 2009 at 06:43:27 PM EST

Now Chrysler will have more money and those people without jobs'll have, well, they'll have, um, they'll have...wait a second, it'll come to me...

The opportunity to collect unemployment? (5.00 / 3) (#3)
by Anne on Thu May 14, 2009 at 06:56:09 PM EST

The chance to worry about how to pay the mortgage?

The thrill of maybe having to go without health insurance?

The joy of breaking their kids' hearts when they tell them there's no money for college?

And best of all...with no health insurance, the stress of worrying about paying the bills and looking for work, reading about bankster bonuses will provide more opportunities for anger and bitterness.

The possibilities are endless...

[ Parent ]

: silly me... (5.00 / 1) (#5)
by Dadler on Thu May 14, 2009 at 07:01:54 PM EST

...i was trying to think of positives.
i really needed the power of negative thinking.
now THAT'S change i can belie-- um, wait...

[ Parent ]

Welcome to (5.00 / 2) (#4)
by glennmcgahee on Thu May 14, 2009 at 07:00:46 PM EST

Ronald Reagan's trickle down economics. Obama did say he thought Reagan had some good ideas. Too bad people forgot to ask which ones he thought were good.

: Let's also give credit (none / 0) (#12)
by cal1942 on Fri May 15, 2009 at 12:53:43 AM EST

for the destruction of American manufacturing to the financialization of the American economy.
Of course we have to give another nod to Reagan for assistance in that effort but, he shares credit with H W Bush, W Bush and one of our own, Mr. Clinton.
If trends continue, we'll have to add Mr. Obama to that list, he's certainly doing everything possible to make sure it all stays the same.

[ Parent ]

When I said last October (5.00 / 2) (#6)
by Jlvngstn on Thu May 14, 2009 at 07:43:40 PM EST

and this January that Obama was ceding 10% unemployment with is stimulus plans I might have underestimated. We may reach 11%. With the impending CRE crash and Hospitality crash and commodities disaster we are looking at 8-10 million bankruptcies this year. Dare I say 4.5 million foreclosures? Probably not because I think we will have 1-2 million spill over into the first 4 months of next year. I was completely wrong however that Obama's approval ratings would start to drop in April and May and drop further in June or July. My guess is that now the moratoria is over for foreclosures and it starts to hit enmasse and the banks continue to receive money and the legislation helping individuals keeps getting shot down, the big drop will come about the time of the market crash come October.

The good news is John McCain was not elected. The bad news is Obama's plans for the economy simply lack progressive thinking.

Unemployed (5.00 / 1) (#8)
by koshembos on Thu May 14, 2009 at 09:19:18 PM EST

If 20 people work at each dealership (some have way more), we are talking 16,000 people losing their jobs.

: And, the trickle down and out effect (5.00 / 1) (#9)
by Inspector Gadget on Thu May 14, 2009 at 09:49:26 PM EST

as all the vendors and businesses that benefit from the dealership and employed workers in their area take a hit. Not to mention the freight companies that transport those vehicles from factory to dealer, the print shops that create the brochures, the parts manufacturers ... and, the list goes on and on.

[ Parent ]
: here it ranges 20-100 (none / 0) (#10)
by nycstray on Thu May 14, 2009 at 10:16:07 PM EST

I thought I bookmarked the article on the local ones that had some stats, but I didn't and they've changed the online article. A few of the dealerships slated to close for Chrysler may stay open as they had other makes, but will still need staff cuts. Dealers are saying that they had been encouraged/pressured to buy more cars etc and are now being shafted. One said that Chrysler wanted them to build a sep showroom for their cars. As one guy said, at 9PM last night we were in business, at 9AM we suddenly weren't. Now to see what GM hands out tomorrow . . .

[ Parent ]
: Do the math.... (none / 0) (#11)
by NYShooter on Fri May 15, 2009 at 12:00:17 AM EST

that's not even one day's loss of jobs at the current rate.
At 600,000 job losses per month:
600,000 x 12 = 7,200,000 per year, divided by 365 days >>>>>>>>>> 19,726 per day.
And those are just the ones being reported; most economists say the real number is about twice that.

[ Parent ]
: Way more (none / 0) (#15)
by jbindc on Fri May 15, 2009 at 09:14:47 AM EST

try around 40,000 (just from the Chrysler dealerships alone). This doesn't count the residual effect on the neighborhoods around the dealership.
And it certainly doesn't count the effect of the GM dealership closings expected to be announced today.

[ Parent ]

Wow, that's too much (none / 0) (#1)
by andgarden on Thu May 14, 2009 at 06:24:45 PM EST

at the very top of the closure list is one VERNON G BUCHANAN.

Otherwise known as Congressman Buchanan of Florida's 13th district.

well, with all this here (none / 0) (#7)
by cpinva on Thu May 14, 2009 at 09:15:44 PM EST

socializing that obama's trying to force on the country, at least these people will have someone to talk to. i expect there'll be some really nice parties too.

on a lighter note: i (and i suspect about a zillion other people) am having a difficult time feeling sorry for car salesmen. that ranks right up there, in the american psyche, with sympathizing with, um, politicians and lawyers. :)

yell, but don't hit, jeralyn!

Auto salespeople (none / 0) (#13)
by cal1942 on Fri May 15, 2009 at 01:05:38 AM EST

aren't exactly the best paid workers and the plain fact is that they're working people with families to support, etc. They don't have golden parachutes or past mega earnings to see them through.

Whenever a worker loses a job we're all diminished.

[ Parent ]

: next time, (none / 0) (#14)
by cpinva on Fri May 15, 2009 at 08:01:16 AM EST

i'll put SNARK in BIG, BLOCK letters.

[ Parent ]