Chrysler LLC on Thursday told 789 of its new-vehicle dealers, including eight in Arkansas, that it will terminate their franchise agreements, forcing them to stop selling Chrysler, Dodge and Jeep products in less than four weeks.
Chrysler is breaking contracts with about a quarter of its 3,188 retail outlets nationally. It has 36 dealerships in Arkansas.
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.
Bad news for car sellers will continue today.
General Motors Corp. will notify 1,000 to 1,200 of its dealerships that it will not renew their franchise agreements when they expire in September 2010. As many as 30 of GM’s 86 dealers in Arkansas could be eliminated, said Dennis Jungmeyer, president of the Arkansas Automobile Dealers Association.
Read the Full Article: Arkansas Democrat Gazette