Chrysler announces dealership closures; GM's list is expected Friday; much downside for rural areas

Chrysler Corp. announced today it would be cutting almost a quarter of its dealerships, while General Motors is expected to announce the closure of 1,000 to 1,200 dealers on Friday. The cuts would have a big imapct on small towns and rural areas, as we have reported.

The National Automobile Dealers Association is lobbying the Obama administration's auto-industry task force to allow the companies to keep more dealerships. "We’re not objecting to consolidation. We understand the realities of the marketplace," NADA president John McEleney told Nick Bunkley of The New York Times. "The situation’s going to get taken care of by natural market forces. To radically accelerate the process doesn’t seem to make sense in this environment." (Read more)

What dealerships are closing in your area? A complete list of Chrysler closings is available here.

UPDATE: The Treasury Department, perhaps feeling the political heat, issued a press release this afternoon saying in part, "The Task Force played no role in deciding which dealers, or how many dealers, were part of Chrysler’s announcement today. We understand that this rationalization will be difficult on the dealers that will no longer be selling Chrysler cars and on the communities in which they operate. However, the sacrifices by the dealer community – alongside those of auto workers, suppliers, creditors, and other Chrysler stakeholders – are necessary for this company and the industry to succeed." (Read more)