Is Chrysler approaching dealers to terminate their Franchise Agreement?

[XDCX]

I read an article on the Internet that reported that two Chrysler Dealerships had recently closed their operations. Sadly, that's not really news - it seems that many stores have been closing in light of the economy.

The part that I thought was interesting was that one of the Dealer Principals indicated that he was contacted by Chrysler and asked if he wanted to terminate his Franchise Agreement. Apparently he was running a low volume store that was losing money and Chrysler asked if he wanted to close down.

Here's a link to the news report: http://www.altoonamirror.com/page/co...9.html?nav=742

I wonder if this is going on across the country? Is Chrysler trying to lower its dealer count by closing some of the smaller rural stores? I wonder if Chrysler is offering any assistance to help with the termination?

[dealer3100]

Another

http://www2.pasadenastarnews.com/ci_10493625

[XDCX]

Originally Posted by dealer3100

Another

http://www2.pasadenastarnews.com/ci_10493625

Wow, I hadn't heard about the closing of El Monte Chrysler, Jeep, Dodge.

I've never been to that dealership but the news report in your post indicates that the facility is only two years old.

I know that it's tough out there, but it seems like the Chrysler stores in California are just getting hammered. I bet there are 10 stores that have closed in the past year.

[XDCX]

In response to this thread I took a minute just to re-cap all of the Chrysler stores that have closed in California so far in 2008. There have been 10 closures.

Here's a link to the thread that lists the 10 stores: http://www.dealershipforum.com/forum...=1570#post1570

Hopefully it will get better from here.