789 Chrysler Dealers to Close By June 9

By David Thomas  on May 14, 2009

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Today, Chrysler told 789 of its dealers — roughly 25% — they would be eliminated from the company's dealer network. That would bring the total number of Chrysler dealers to just over 2,400, which is still twice as many as Toyota's 1,200. In 2008, Toyota outsold Chrysler 2,217,662 to 1,453,122 in total units.The company says that the 789 dealers accounted for 14% of its total sales.

Owners who purchased vehicles from any of the 789 closing dealerships will receive notices about where they can get their vehicles serviced after June 9. Chrysler will not have to buy back inventory, parts or tools from the closing dealers, but says it will connect closing shops with healthy ones that will buy up those items.

The eliminated shops will get a chance to fight the closings in bankruptcy court from today through June 9.

Many analysts suggest that the relative ease with which Chrysler is closing the dealerships is a benefit of the company entering bankruptcy. The move also likely means GM would look to bankruptcy to help shed a large chunk of its 6,400-dealer network.

A PDF listing of all the contacted dealers can be found here.

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Managing Editor David Thomas has a thing for wagons and owns a 2010 Subaru Outback and a 2005 Volkswagen Passat wagon.  Email David