Chrysler bankruptcy hearing could affect 25 Northwest dealerships - Spokane, North Idaho News & Weather KHQ.com

Chrysler bankruptcy hearing could affect 25 Northwest dealerships

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  • 25 Northwest Chrysler dealerships on closure list

    25 Northwest Chrysler dealerships on closure list

    SPOKANE, Wash. - Chrysler LLC has told a bankruptcy court it plans to eliminate 789 of its dealers including 25 dealerships in the Pacific Northwest. 

     
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    SPOKANE, Wash. - Chrysler LLC has told a bankruptcy court it plans to eliminate 789 of its dealers including 25 dealerships in the Pacific Northwest. The automaker has about 3,200 dealers but says that's too many. INSIDE>> List of Northwest dealerships that could face closure & Master List of closures nationwide>>

NEW YORK, NY - A bankruptcy judge is getting closer to a decision on what will happen to nearly 800 Chrysler dealerships across the United States including 25 in the Pacific Northwest.

U.S. Judge Arthur Gonzalez is expected to hear testimony today from Chrysler executives and dealership owners from across the country today. Auburn Hills, Mich.-based Chrysler says it needs to reduce its dealer base in order to cut costs and restructure. It says that many of the dealerships in question are either unprofitable or located too close to other Chrysler dealerships.

According to a master list of the dealerships set for closure no Spokane businesses would be affected however 25 dealerships in Washington, Idaho & Oregon were on the list. In Eastern Washington & North Idaho there were four closures with two other closures in Yakima and Tri Cities respectively.

The dealers affected by the plan began receiving notification letters Thursday May 14 warning them about the planned closures. Chrysler's notices to owners said that pending approval from the court, dealership agreements would be terminated on or about June 9, 2009.

Dealers contend that they don't cost the automaker anything, but actually make the company money by selling its cars and trucks.

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