Rhode Island--Chrysler LLC closing just one car dealerships in Rhode Island. Chrysler eliminating 789 Dealerships Under Bankruptcy Restructuring Plan nevertheless had a huge impact on the country.
Many of the dealers' sales are too low, the automaker said. More than 38,000 people will be without work once the dealerships close on June 9.
Chrysler has been working to consolidate its dealerships by helping to create more that sell all three of Chrysler's brands - Dodge, Jeep and Chrysler - under one roof. About 62% of Chrysler dealers are consolidated now but after these closures 84% will be
Chrysler has received $4 billion in federal loans and has been operating in bankruptcy protection since April 30. Its sales this year are down 46 percent compared with the first four months of last year and it reported a $16.8 billion net loss for 2008.
One dealership in Rhode Island on the list of those to be eliminated:
TARBOX MOTORS INC located in NORTH KINGSTOWN,Rhode Island
Closing dealerships won't affect the bottom line for any manufacturer positively but will negatively affect thousands of independent businesses, their employees, their customers who rely on them for sales and service and the communities that rely on those dealerships. Will closing dealerships help or hurt Chrysler and General Motors...
(The AP contributed to this.)
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