Chrysler moves to eliminate 17 La. dealers

Chrysler wants to eliminate roughly a quarter of its 3,200 U.S. dealerships by early next month, saying in a bankruptcy court filing today that the network is antiquated and has too many stores competing with each other. The company, in a motion filed with the U.S. Bankruptcy Court in New York, said it wants to eliminate 789 dealerships by June 9. The list includes 17 dealerships in Louisiana, including New Roads Motor Company and Hood Motor Company in Amite. For a list of all the Louisiana Chrysler dealerships targeted for elimination, click here. Many of the dealers’ sales are too low, the automaker says. Just more than 50% of dealers account for about 90% of the company’s U.S. sales. Dealers were told today via a United Parcel Service letter if they would remain or be eliminated. The move, which the dealers can appeal, is likely to cause devastating effects in cities and towns across the country as thousands of jobs are lost and taxes are not paid. Ralph Sellers, who owns a Chrysler, Dodge and Jeep dealership in Gonzales, says today was “a horrible day.” “I lost some very good friends,” he says. “There are some good dealers who just lost their livelihood.” For a list of all the U.S. dealerships Chrysler plans to cut, click here.—Timothy Boone