Chrysler may close another 100 dealerships

Back in June when Chrysler emerged from a U.S. government funded bankruptcy it terminated nearly 800 dealerships in an effort to keep its network size in line with its U.S. market share. Chrysler came out of bankruptcy court with about 2,400 dealerships and had 2,366 at the end of October. The Auburn Hills automaker is now planning to close another 100 dealerships if they cannot reach a new financing deal with GMAC Financial Services or other lenders.

Chrysler spokeswoman Kathy Graham said that Chrysler was “optimistic” that nearly all dealerships would find financing for their vehicle inventories and other expenses by the end of November.

Around 1,500 Chrysler Group LLC dealerships sought financing through GMAC, which eventually replaced Chrysler Financial as preferred lender to the dealerships in April.

– By: Stephen Calogera

Source: Reuters