Chrysler LLC will begin immediately the process of evaluating which dealerships will survive its Chapter 11 reorganization and which will not, co-President Jim Press told dealers in a national conference call today.
"There will be a noticeable reduction in number of dealers," Press said. "The business centers will be developing lists of those points that will not be viable."
Soon after news of Chrysler's Chapter 11 plans became public today, the National Automobile Dealers Association said it opposed the idea of using bankruptcy as a way of reducing dealer count.
Press told dealers he did not know how many of its 3,200 stores Chrysler will try to cut as it reorganizes and forms a new company in partnership with Fiat S.p.A. Press told dealers it would not be a long process. Among the principal criteria will be dealers' financial viability.