State News

Chrysler to eliminate 25 dealerships in Carolinas

Posted May 14, 2009

— Chrysler will close at least 25 dealerships in the Carolinas as part of a bankruptcy motion likely to devastate cities and towns.

The company filed the motion with the U.S. Bankruptcy Court in New York on Thursday, citing low dealership sales. Plans to eliminate 789 of its 3,200 dealerships would close at least 14 stores in North Carolina and 11 in South Carolina.

Four area dealerships are among those on the chopping block: Southern States Dodge in Raleigh, Johnson Chrysler-Dodge-Jeep in Durham, Goldsboro Chrysler-Dodge-Jeep and Williamson Motors in Clinton.

The motion states just over 50 percent of its dealers account for about 90 percent of the company's U.S. sales. Dealers may appeal the proposal.

Chrysler has received $4 billion in federal loans and has been operating under bankruptcy protection since April 30. Its sales this year are down 46 percent compared with the first four months of last year. Chrysler reported a nearly $17 billion net loss for 2008.

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  • pbjbeach May 15, 2009

    IN MY OPINION THIS IS THE UTLMATE RESULTS OF TRICKLE DOWN ECONOMICS WHEN IN REALITY IT WAS TRICKLE UP ECONOMICS TO LOOK OUT FOR THE RICH AN THE ULTRA RICH AN THE US COPORATIONS THAT HAVE BEEN THE BACKBONE AN SUPPORTING FACTORS FOR THE REPUBLICAN PARTY FOR YEARS THANK YOU

  • beachboater May 15, 2009

    Goldsboro Chrysler Jeep closed a while back. It was minority owned. Your Pal Hal was put into business by Chrysler Corporation. The absolute WORST people I've ever tried to deal with. Deceptive selling techniques, bait and switch, bunch of sheisters. Talk about high pressure. Wouldn't give you a price on a car until you allowed them to run a credit check.

    They should have gone under a LONG time ago.

  • myrtlebeachrock May 14, 2009

    I bet Henrick Auto Dealers will not close. The largest dealer in America and all of the race car teams Henrick owns. And GM and Chrystler would not do any thing to hurt their association with Nascar. It's all they have going for them and their best marketing tool.

  • Alexia.1 May 14, 2009

    Can somebody explain why it is necessary to close dealerships? I assume the dealerships pay franchise fees. Is Chrysler losing money by having an underperforming dealership? If so, how? I assumed each (the car maker and the dealers) were responsible for their own costs.

    Perhaps it's not that they were costing the car maker, but perhaps the car maker just wants to have only high-volume (and larger) dealers around?

  • living the dream May 14, 2009

    I have a 2000 Pontiac Montana with 215,000 miles and have had excellent service with it.

  • planter May 14, 2009

    I can't read between the lines. What will devastate cities and towns, the bankruptcy or closing a few dealerships? Who wrote this story?

  • wildervb May 14, 2009

    I have to laugh at those who were educated by the likes of Rush Limbaugh when it comes to history. Yeah the economy was bad when Carter was President, just as it had been bad under Ford and Nixon, both of whom couldn't stop inflation.

    Carter is painted now by conservatives as some sort of wild liberal when in fact he was a very moderate President, who was challenged from his own party on the left (Ted Kennedy).

    Carter's budget deficits were less than Fords (before him), and much less than Reagan's deficits.

    If you want to trace where the US government realy started spending more than it took in, start with the first Reagan administration. (Look it up!)

  • chrbellm9 May 14, 2009

    The car companies brought this on there selves with cars costing almost a fourth of what most folks houses cost. Now that we are in the money mess were in no one is going to fork out 25 thousand + for a car. I can't afford but the basic bottom of the line car if times were good, I'm not going to finance a car for 7 or 8 years. Good Luck!! I'll stick to used Honda's!!!! Best $3,000 I ever spent!

  • Quagmire May 14, 2009

    Now let us understand that this is CHANGE WE CAN BELIEVE IN!
    TheAdmiral

    You must drive a buick.

  • Libandproud May 14, 2009

    "My last two cars have been American and have been great machines. The Toyoto I had before that was always breaking and expensive to fix." funkyneighborlee

    I'm glad you've had a positive experience, but I think that's the exception rather than the rule. I always took pride in only buying American cars, but the quality and service became so pathetic I bit the bullet and went with Hondas, Toyotas, and Nissans. For me, there's no comparison. And I didn't buy the cheap American cars....my last 3 USA vehicles were Pontiac Bonneville SSE, Buick Park Avenue, and Cadillac CTS. They were all in the shop so often I think they had more verticle miles than horizontal. And warranties were a nightmare. American car companies did this to themselves.

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