Chrysler franchise no more
By Seth Nidever snidever@HanfordSentinel.com
Kings County's only Chrysler franchise is history. A New York bankruptcy court judge ruled late Tuesday afternoon that Chrysler can go ahead with its plan to terminate its relationship with Liberty Chrysler Jeep Dodge in Hanford and 788 other dealerships nationwide.
The order said that, as of midnight Tuesday, the franchises could no longer act as authorized Chrysler, Dodge and Jeep dealers.
Dwight Nelson, who has owned Liberty since 1991, said he would appeal the ruling.
"Quite honestly, we expected the judge to do this," he said.
In anticipation of the ruling, Liberty has spent the last few weeks whittling down its new car inventory. Manager Rick Jacobs said that whatever new vehicles remained on the lot at midnight Tuesday would be redistributed to other Chrysler dealerships at a loss.
Liberty won't be going out of business. The dealership will continue selling used cars, Jacobs said.
Owner Dwight Nelson said he's thinking about bringing in different brands of new vehicles. Nelson owns the Selma Auto Mall, which sells several brands, including Honda, Chevy and Mazda.
Nelson declined to state what the new line might be.
None of the 23 employees at Liberty have been laid off, he said.
After the recession began in early 2008, Liberty struggled with plunging new car sales, which were down 50 percent in 2008. In 2009, sales dropped again by 45 percent.
Nelson said his attorney has been arguing in court to save the dealership, appealing to the agricultural crisis in the area as the main reason for the sales decline and arguing that it would be unsafe and unreasonable to require local Chrysler, Jeep or Dodge owners to travel out of the county for repairs.
Chrysler LLC says it needs to cut its dealer ranks by about 25 percent as part of its plans to cut costs and quickly emerge from Chapter 11 protection.
By Tuesday afternoon, there were only a few dozen vehicles occupying one small part of the mostly empty Liberty lot on the corner of 11th Avenue and Lacey Boulevard.
Scott Lendrum walked past the cars, eyeing possible replacements for his 2005 Chrysler 300.
He said he had heard that June 9 was the last day to buy a new car with a warranty from the dealership.
"The deals are pretty good," he said.
In related news, Italy's Fiat today became the new owner of Chrysler, saving the troubled U.S. automaker from liquidation and placing a new company in the hands of Fiat CEO Sergio Marchionne.
Fiat had already declared its intention not to pick up the 789 dealer franchises terminated by Chrysler.
The Associated Press contributed to this story. The reporter can be reached at 583-2432.
(June 10, 2009)
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Watchdog Fred wrote on Jun 10, 2009 12:05 PM: