Chrysler May Terminate Liberty Motors Chrysler-Dodge Dealership

This post was written by jd on May 14, 2009
Posted Under: Business


Liberty Motors

Liberty Motors

Wow, in continuing bad news for Grass Valley’s tax revenues and our local shopping, Chrysler has announced that they are trying to close 789 dealerships according to CNN today. One of the chosen one’s is our local Chrysler dealer, G.K. Alcombrack, Inc. known as Liberty Motors Dodge Chrysler off of Freeman Lane.

Since Chrysler is in bankruptcy court, they are asking that the sales and service agreements between Chrysler Motors LLC and the 789 dealerships be terminated.

Chrysler has already sent letters to the dealerships and “Upon approval from the court, your agreement will be rejected on or about June 9, 2009”. This represents about 25% of their dealerships and represents about 14% of their sales.

So now we have lost Weaver GMAC, Ford has moved to Auburn and we may lose Chrysler. The only car sales remaining in Western Nevada County will be used car dealers. If we want to buy a new car, we’ll have to go out of town. Not a good thing, sorry to say. That means we have not only lost our dealerships, but when we want warranty work, that’s another trip out of town and more lost revenue.

I talked to Ernie Shewmaker today, salesman for Liberty Motors and he stated that they will continue to sell used cars at their present site. He claims they have not ordered any vehicles from Chrysler in months. However, their website still reflects that they are a Chrysler dealer.

To read the full story got to CNN Chrysler Closing 789 Dealerships

For a map of the 789 Dealerships to be closed go to New York Times Maps of Closings

Reader Comments

Well, I’ve hated the US auto industry (mainly the unions and dealers I blame, but it’s all the same economic-political system) for a long time. If it had failed or massively restructured 10 years ago, the efficiency gains in the economy may have prevented this recession.
Water under the bridge. Anyway, somewhere I just read that 1 in 4 of dealers are losing their contracts. Not enough, I think. Too little, and way too late. For a long time I wanted to sell GM short, but didn’t have the balls. A month or two ago when it was hanging out at $2 for a while, I tried, but my broker had no shares they could loan me. It would have cost more effort, and borrowing fees, so I happily forgot about it.

Cars were good for the development of the US, but we owe nothing to the industry. (It just does not follow.) A victim of their own success, might be a nicer way to put it. The sooner GM officially BKs, the quicker the general recovery will be I think.

Written By david on May 17th, 2009 @ 6:37 AM