More than 100 Chrysler U.S. dealerships face possible closure
By Andrew C., 30 Aug, 2010. 0 Comments
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About 100 Chrysler Group US dealerships are in danger of closing unless they enter new financing deals with GMAC Financial Services or another lender, according to people familiar with the process. Chrysler spokeswoman Kathy Graham said however that Chrysler remains optimistic that all or almost all of these dealerships would find financing for vehicle inventories and other expenses by the end of November. Last June, Chrysler emerged from a government-funded bankruptcy in June with about 2,400 dealerships.
In October, 2,366 dealerships were left. Graham said that this is about right for its expected 2010 sales. GMAC, which replaced Chrysler Financial as preferred lender to the dealerships in April, received about 1,500 applications from Chrysler dealerships.
The rest had gone to get deals from other lenders. GMAC spokesman Tony Sapienza said that a majority of the applications have been granted or are expected to be approved. To date, GMAC has rejected 83 dealerships and up to 60 remain under consideration.
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