DETROIT: A total of 789 Chrysler dealerships will close under the automakers bankruptcy terms. The number comprises nearly one-fourth of the roughly 3,200 dealers doing business today, and around 14 percent of Chrysler’s total sales volume, MarketWatch reports. Franchise agreements will be cancelled as of June 9. The cuts bring the number of Chrysler dealers to around half of what it was eight years ago, eliminating another estimated 150,000 jobs.
As TVBreported yesterday, car and truck dealerships comprised the fourth largest category in spot spending among the top 100 TV markets for 2008. Automakers and dealers represented 12 of the top 25 spot spenders in those markets for the year. Chrysler filed for bankruptcy April 30. General Motors is expected to do so if it can’t come up with a restructure plan that meets federal approval by June 1. GM is expected to cut as many as 2,000 of its 6,200 dealerships in the coming days, Reuters has reported.
A complete list of dealerships slated for closure is available from The Wall Street Journalhere.
--Deborah D. McAdams
