Chrysler Dealerships Closing by the Hundreds

A quarter of Chrysler dealerships closing

United States automaker Chrysler says it will close 789 of its U.S. dealerships, which adds up to about a quarter of its total dealerships.

According to the Washington Post, Chrysler has 3,181 dealerships in the U.S.

Who will be hit hard

Toledo.com, a news outlet in Toledo, Ohio, says that 47 dealerships in Ohio, mostly in the northeastern part of the state, will close.

The Chrysler dealerships closing include Jeep and Dodge. Many Jeep, Dodge and Dodge Truck dealerships across the country will be shut down.

Does Chrysler need debt relief?

The dealership shutdowns are the result of Chrysler rushing to pare down business and cuts costs. Chrysler has already filed for bankruptcy protection and gotten $4 billion in federal installment loans.

Chrysler received bankruptcy protection April 30. Chrysler has been conducting a project called “Project Genesis” to determine which dealerships are the “most desirable,” according to The Washington Post. That helped the automaker determine which Chrysler dealerships are closing.

Project Genesis

The Washington Post says:

Over the past eight years, Chrysler consolidated its dealer network within the limits of existing contracts and rules, an effort that cost the company $216 million, Chrysler said. In recent months, the automaker has worked with its would-be owners — a coalition lead by Italian automaker Fiat — to “refine” the evaluation of dealers, Chrysler said.

Though Chrysler recently entered a partnership with Fiat, the automaker is working on reducing its dealership network to a more appropriate size as it works through restructuring following its bankruptcy filing. ... click here to read the rest of the article titled "Chrysler Dealerships Closing by the Hundreds"