Chrysler Closing Some Area Dealerships In Bankruptcy

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.

Reference:

CNN.com Chrysler closing 789 dealerships

SeattlePI.com 15 Washington Chrysler dealers on list