Several Chrysler Dealerships To Close
Dealers in Decatur, Dalton, Calhoun, Newnan Among Those Closing
POSTED: 10:16 am EDT May 14,
2009
UPDATED: 6:02 am EDT May 15,
2009
ATLANTA -- Several metro Atlanta dealerships are among the 789 that Chrysler will close as part of its restructuring plan.At least 13 dealerships in Georgia are among the 789 Chrysler LLC says it want to close in a motion it filed in a bankruptcy court in New York on Thursday.
The automaker has about 3,200 dealers but told a bankruptcy judge that that's too many. It wants to have stronger, more profitable dealers with better facilities.The company said its network is antiquated and has too many stores competing with each other.The average dealership employs about 40 to 60 people.Chrysler included on its list dealerships in Augusta, Claxton, Clayton, Cleveland, Dalton, Decatur, Jackson, Jasper, Milledgeville, two in Newnan, Savannah and Thomaston.Chrysler spokeswoman Kathy Graham says the company will notify specific dealers before commenting publicly.The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the U.S., costing jobs and tax revenue.CBS Atlanta's Mike Moore talked with the general manager of South-Towne motors in Newnan.“It's disappointing ‘cause I truly believe that the action was taken so quickly by people so far outside the system,” said Steve Mader.Mader admits he has to accept that Chrysler has made a decision to end its franchise agreement with South-Towne Motors, but said more time should have been taken in coming to that decision“The letter came in at 10:15 a.m. and a truck load of Jeeps came in at noon,” said Mader.The cars have been paid for and Mader is stuck with them.
The automaker has about 3,200 dealers but told a bankruptcy judge that that's too many. It wants to have stronger, more profitable dealers with better facilities.The company said its network is antiquated and has too many stores competing with each other.The average dealership employs about 40 to 60 people.Chrysler included on its list dealerships in Augusta, Claxton, Clayton, Cleveland, Dalton, Decatur, Jackson, Jasper, Milledgeville, two in Newnan, Savannah and Thomaston.Chrysler spokeswoman Kathy Graham says the company will notify specific dealers before commenting publicly.The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the U.S., costing jobs and tax revenue.CBS Atlanta's Mike Moore talked with the general manager of South-Towne motors in Newnan.“It's disappointing ‘cause I truly believe that the action was taken so quickly by people so far outside the system,” said Steve Mader.Mader admits he has to accept that Chrysler has made a decision to end its franchise agreement with South-Towne Motors, but said more time should have been taken in coming to that decision“The letter came in at 10:15 a.m. and a truck load of Jeeps came in at noon,” said Mader.The cars have been paid for and Mader is stuck with them.
Copyright 2009 by cbsatlanta.com. The Associated Press contributed to this report. All rights reserved.
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