Chrysler moves to eliminate 789 dealers, 39 in Michigan

[billyoc]

Washington -- Chrysler LLC sought Thursday to close 789 of its nearly 3,200 dealers, asking a bankruptcy court to cancel the dealers' franchise agreements.

The list includes 39 dealerships in Michigan. Every state but Alaska is losing dealerships. The closings could throw as many as 40,000 people out of work nationwide.

Chrysler wants to shutter the dealerships by June 9, saying its network of dealers was too large, and cost too much. Chrysler had 6,500 dealers in the mid-1960s and reduced that to about 4,100 by 2001 and 3,181 by April 30 -- as another 400 dealers have closed since January 2008.

The Treasury Department sought to counter anger on Capitol Hill Thursday by noting that Chrysler would have collapsed with additional government aid -- "which would have eliminated all 3,200 of the company's dealers" and instead brokered a tie-up with Italian automaker Fiat SpA.

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http://www.detnews.com/article/20090514/AUTO01/905140450/Chrysler-moves-to-eliminate-789-dealers--39-in-Michigan