Thursday, May 28, 2009
Chrysler Dealers Follow Suit in Bankruptcy Claims
Nearly 800 Chrysler auto dealers will be closing their doors as a result of the automaker's emergence from Chapter 11 bankruptcy. In just one month, about a quarter of all Chrysler auto dealers will be shut down.
The dealers the automaker is focusing on have failed to produce more than 100 new car sales over the course of the past year. While the company claims that many of these dealers are redundant, they have yet to say what affect this will have on local economies and what potential unemployed workers will do for jobs.
In addition to redundant dealers, Chrysler is going to look at dealers that have auto sales primarily in used cars rather than the newer, more expensive cars. According to Chrysler, 44% of the dealerships being closed also sell cars that are not Chrysler. These dealership closings are all apparently part of Chrysler's bankruptcy strategy called Project Genesis. With this new strategy, Chrysler is going to attempt to integrate their three strongest brands: Dodge, Chrysler, and Jeep.
Bankruptcy is not something that is only happening to large businesses. Small business bankruptcy claims and individual bankruptcy claims are becoming more and more common as well. Regardless of the situation, a bankruptcy attorney is essential if you are filing any type of bankruptcy claim.