Chrysler Closing Some Area Dealerships In Bankruptcy
May 14, 2009 Leave a comment
Chrylser is going into bankruptcy, and will close 789 dealerships nationwide. This is about 25% of the dealers in their network. The dealers to be closed only represent about 14% of Chrysler’s sales, however.
In Yakima, Hahn Motor Company and Lee Peterson Motors Inc made the list of dealers to be closed.
In Tri-Cities, Tri-Cities Motor Sales (Chrysler of Tri-Cities) and Leskovar Lincoln-Mercury (Leskovar Jeep-Eagle) will be closed.
The Obama administration is controlling the bankruptcy process. Taxpayers have $7 billion invested in keeping the company operational. This money will be written off in bankruptcy and will not be repaid.
Under the plan, dealers will have until June 9 to close. Ownership of the company will be a combined interest of the U.S. Government, United Auto Workers union, and the Italian car maker FIAT.
84% of the remaining Chrysler dealers will sell all three of the company’s brands: Chrysler, Dodge, and Jeep.
CNN.com Chrysler closing 789 dealerships
SeattlePI.com 15 Washington Chrysler dealers on list