Bob Israel, president of the Louisiana Automobile Dealers Association, says the state’s 50 to 60 Chrysler dealers don’t know yet how the company’s bankruptcy will affect them. Obama did not directly address franchise agreements or cutting the number of dealerships in his announcement today. But Israel is happy Obama went out of his way to bolster consumer confidence, saying the government is standing behind warranties and repair agreements. “Today’s announcement from President Obama was good news for Chrysler Motors, Chrysler purchasers and Chrysler dealers,” Israel says.
“I think it’s kind of unprecedented,” says Madison Bouanchaud, general manager of New Roads Motor Company, which has about one third of its inventory in Chrysler products. “(The effect on dealers) will depend on how the bankruptcy is structured, and it’ll have a lot to do with the confidence the consumers have. Are they comfortable enough buying the product in light of the fact that the manufacturer is bankrupt?”
Bouanchaud says Chrysler sales dropped significantly this month as word of the possible bankruptcy spread. His company closed its Chevrolet dealership in New Roads in January due to the brutal market conditions for vehicle sales, and like most dealers he is trying to hold down his inventory across the board. “There’s still a lot of uncertainty,” Bouanchaud says. “You just plan for the worst and hope for the best.”—David Jacobs
