Chrysler Dealerships Due to Close

It is no secret that our economy is in a backslide, the financial deficit has caused many things around the U.S. to change. Unfortunately due to the economic state many well known and established business are being threatened to close for bankruptcy and other financial issues. One of which we all know well is Chrysler LLC. It is truly unfortunate the changes that are being made in companies across U.S.

According to the Phoenix Business Journal Chrysler, a popular car dealership has plans to get rid of 789 dealerships in the U.S. This makes for a total of 25% of the companies dealerships and will include 5 in the State of Arizona alone, up to 12 Chrysler dealers will be closing in Washington, eight in the northern area of Texas and 11 in the Kansas City area. It has been said that Chrysler had filed for a Chapter 11 bankruptcy early in April and the closure of these dealers was discussed in the court proceedings. According to Chrysler in their court filing, their dealers we're not as competitive as some of the other foreign car brands. Chrysler says that on an average they were able to sell 303 vehicles per dealer in the year 2008, which is a 46% drop in their sales from previous years. On the other hand, car brands such as Honda sold an average of 1,200 vehicles per dealer, and Toyota topped that with nearly 1,300 of their vehicles sold per dealer

Sadly the dealers were notified in the A.M. hours through UPS letters if their dealership would be one of the ones to stay open or on the closure list. A list of dealers that are due for closure across the United States can be found at this link. The closing dealerships do have the option to appeal, but because most of them are in a struggle anyway to make ends meet the option may be a fluke.

The trouble with Chrysler closing down so many of its dealers are the number of men and women who will be without jobs and taxes are not paid. It's hard enough to find a job in this economy and with major companies continuing to go out of business it's getting harder. Unfortunately until the economy picks back up these are the changes that we must face.