June 12, 2009

Chrysler Shuts Down Eight Local Dealerships

SANFORD, Fla. (WOFL FOX 35) - They came, but most left Tuesday without what they came for, a steeply-discounted car.

When asked by FOX 35’s Tracy Jacim whether she might purchase a car if she finds the right price, customer Michelle Larson responded, “yes, of course!” But Larson’s enthusiasm soon waned. She, like many others who showed up at Courtesy Chrysler Jeep in Sanford on Tuesday, were too late.

According to parent company Chrysler, the dealerships along with nearly 790 other Chrysler dealers had to drop its Chrysler franchise by evening Tuesday, June 9.

Chrysler made that announcement in May, so by Tuesday, Courtesy in Sanford had very few vehicles left on the lot, let alone deals.

“We were expecting 50 percent…but it was more like 15 percent!” said disappointed customer Beverly Lawrence.

“The vehicles still have worth, and it makes no sense to discount it beyond what that worth is,” said Courtesy Chrysler Jeep GM Eric Kriechbaum.

Instead of selling vehicles for no more that a third less for the most part, Kriechbaum and other dealers also focused on moving the vehicles to other Chrysler dealerships that are not losing their franchise, and there are quite a few in Central Florida. For the most part, dealers have been selling the vehicles for a small fee of around $350.

The writing has been on the wall for a few weeks now. In all, Chrysler is pulling 25 percent of its franchise agreements with dealers across the country. In Central Florida, that includes eight. Bob Dance Dodge in Seminole County, Winter Park Dodge, Deland Dodge, Jimmy Vickers Jeep in Merritt Island, Sunshine Dodge and Vic Osman Jeep both in Melbourne, and Courtesy Chrysler Jeep stores in Casselberry and Sanford.

The only two actually shutting down are the Courtesy dealerships. The others plan to sell used cars or different brands.

“We placed over 50 percent of our associates in other Auto Nation stores,” said Kriechbaum. “I’ve been with the company for 15 years,” he added, “and they’re trying to get me a spot myself.”

While employees shuffle for new spots, general managers shuffle to find a place for all the cars not sold.

“We took a loss, yes, but we managed to move the majority of our inventory. We only have 25 cars left out of 150. We did real well.”

The dealerships that still have Chrysler vehicles left over can still sell those vehicles, but they can’t sell them as new cars or with warranties or incentives.

Source (article): MYFOXORLANDO

Source (picture): SHOUTSHARE

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