Chrysler to close nearly 800 U.S. dealerships
None to go in Canada
Last Updated: Thursday, May 14, 2009 | 3:15 PM ET
CBC News
Chrysler's U.S. operation plans to close nearly 800 dealerships, about 25 per cent of its outlets, the company told a U.S. bankruptcy court Thursday.
But Chrysler Canada has no similar plans, a spokeswoman said. "We expect the total number across Canada to remain relatively stable (roughly 450)," Mary Gauthier said in a statement.
Chrysler said in a U.S. bankruptcy hearing that it plans to cut 789 of its dealers around the U.S. It has about 3,200 across the U.S., but doesn't have the sales to justify that number of outlets.
Each Chrysler dealer sold just a fraction of the number of vehicles sold by Toyota dealers, for example, Chrysler said.
The company wants fewer, better financed dealers with better facilities.
Auto dealers are often pillars of their communities, providing well-paying jobs and supporting local cultural groups, teams and charities.
But the cuts at Chrysler and its competitors have been expected as the North American manufacturers shed plants and production jobs.
Chrysler is restructuring in bankruptcy protection with support from the U.S. and Canadian governments.
No individual U.S. dealerships have been told their days are numbered, spokeswoman Kathy Graham said. The company will tell dealers before making any public comments.
In Canada, the Chrysler brands — Chrysler, Jeep, and Dodge — have been consolidated already, so "virtually all" Canadian dealers sell all three, Gauthier said.
GM Canada has said it will cut its number of dealers to about 400 by the end of next year from 705 in 2009, a cut of about 40 per cent, "consistent with that in the U.S."
With files from The Associated Press
