DETROIT -- Chrysler LLC will tell its dealers today that it will guarantee to redistribute all new vehicles in its rejected dealers inventory, said Steven Landry, executive vice president of North American sales and service.
Between payments from surviving dealers who will buy some of those cars and trucks, and reimbursement for fees from Chrysler, the rejected dealers will be out of pocket only $350 per vehicle for destination charges, he told Automotive News.
Theyll be made whole, other than the $350, he said.
Redistributing all vehicles from the rejected dealers inventory is a far cry from the mass liquidation of product that some observers had predicted, he said.
When Chrysler notified 789 dealers on May 15 that they would be terminated June 9, those dealers carried about 42,000 new vehicles in inventory. As of this afternoon, 16,000 have been sold to customers and 26,000 assigned for redistribution to surviving Chrysler, Dodge and Jeep dealers. That leaves just 400, Landry said.
The vehicles cannot actually be moved until June 10 at the earliest. But Chrysler already has hired nine companies that inspect and ship vehicles to handle the redistribution, Landry said.
Of the 789 rejected dealers, 220 have not signed a consent form agreeing to Chryslers vehicle redistribution plan, he said. But Chrysler has tentatively lined up surviving dealers to take the new cars and trucks held by those 220 dealers, he said.
Within 14 days of the vehicles leaving a rejected dealership, the lender to the surviving dealer who is taking the vehicles will reimburse the rejected dealers lender, he said.
Some rejected dealers have said they are not getting reimbursed for such fees as holdback and advertising funds and have said their Chrysler sales zone representative told them they werent being paid. But in such a case, Landry said: He should talk to his accountant, not his zone rep. The money is there.
He said Chrysler has checked the code numbers for all 789 rejected dealers to make sure they have been reimbursed properly.