You’ll have to leave Detroit to buy Chrysler or Jeep, dealer to sell Mahindra & Mahindra small pickup

Chrysler - Jeep

If you live in Detroit and are looking to get your hands on a Chrysler or Jeep, you probably never would have thought that you’d have to leave Motor City to buy a vehicle from the two American brands. Last week, Lochmoor Chrysler Jeep on Detroit’s East Side stopped selling Chrysler products. The retailer was one of the 789 stores Chrysler Group LLC dropped from its dealer network.

Lochmoor Chrysler Jeep is now known as Lochmoor Automotive Group, a used-car dealership and repair shop. The owner’s daughter Gina Russo, who is being trained to take over the business, has agreed to start selling small pickup trucks made by India’s Mahindra & Mahindra.

As if things weren’t already bad for Detroit, GM and Chrysler’s bankruptcies have hurt the city the most, with drastic white-collar jobs being lost. Even local businesses that serviced the two automakers, including ad agencies, accounting firms to shoe-shine outlets, are being hurt.

Detroit has a 22.8 percent unemployment rate – the highest in the U.S.; 30 percent of residents are on food stamps.

“As the city loses so much, the tax base shrinks and the city has to cut back services,” Margaret Dewar, a professor of urban planning at the University of Michigan told The Wall Street Journal. That in turn causes for longer police-response times, less-frequent trash pickup and snow plowing.

– By: Omar Rana

Source: WSJ