Editors Note: This story and an accompanying table, now withdrawn, gave the wrong amount that a rejected Chrysler LLC dealer would be out of pocket in a sale of a vehicle to a surviving dealer. The dealer would not be reimbursed for the destination charge. For 2009 vehicles, that amount will be $350. Chrysler will pay the rejected dealer the holdback, co-op advertising fee, and supplemental floorplan assistance that he or she normally would receive.
Bill Colter, owner of Performance Chrysler-Jeep-Dodge in Phoenix, says he had 300 new vehicles in stock at the beginning of May — before learning that his store will be dropped as a Chrysler LLC dealership as of June 9. He sold 70 to 80 vehicles in the past week, discounting them up to 40 percent from sticker with factory and his own incentives.
"We have been losing money on virtually every car; but if we have to give them away, we will," Colter says.
He and other Chrysler, Dodge and Jeep dealers are clearing their inventory by selling vehicles to customers at a loss rather than rely on the automaker's plan for those vehicles.