Automotive News got a copy of a memo from Chrysler that reportedly confirms the elimination of 789 dealers in the United States by June 9, 2009. The decision will be made official in the upcoming days. As we speak, phased-out dealers are receiving a letter of confirmation.
According to the available info, the 4+ million orphan customers will also receive a letter explaining the closing of their dealership. They will be transferred to other dealers that are still running.
Meanwhile, Chrysler's plan has been revised so that 80 percent of all its U.S. dealerships will now carry the three brands -- Jeep, Chrysler and Dodge -- as opposed to just 62 percent.
The bad news for closing dealers is that, since Chrysler filed for bankruptcy, the automaker won't be obligated to buy back neither the cars nor the parts and tools at the end of the phase-out process.
The U.S. Federal Bankruptcy Court will have 23 days (until June 9) to approve the plan and demand further changes if need be.
For the time being, no details on the fate of Canadian dealers have been released despite numerous attempts to contact Chrysler Canada executives.
According to the available info, the 4+ million orphan customers will also receive a letter explaining the closing of their dealership. They will be transferred to other dealers that are still running.
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Meanwhile, Chrysler's plan has been revised so that 80 percent of all its U.S. dealerships will now carry the three brands -- Jeep, Chrysler and Dodge -- as opposed to just 62 percent.
The bad news for closing dealers is that, since Chrysler filed for bankruptcy, the automaker won't be obligated to buy back neither the cars nor the parts and tools at the end of the phase-out process.
The U.S. Federal Bankruptcy Court will have 23 days (until June 9) to approve the plan and demand further changes if need be.
For the time being, no details on the fate of Canadian dealers have been released despite numerous attempts to contact Chrysler Canada executives.