Lexington, KY - Bankruptcy court filings reveal that Chrysler LLC will eliminate nearly 800 of its 3,189 dealerships across the nation, including one in Louisville along with franchises in seven other Kentucky communities, but none in Lexington.
According to "exhibit A" in Chrysler's April 30 bankruptcy filing, the following Kentucky dealerships are being terminated: Brown's Chrysler-Jeep-Dodge, Paintsville; Drake - Chrysler-Plymouth-Dodge-Jeep, Monticello; Epp's Jeep, Middlesboro; Lee Chrysler-Dodge, Pineville; Alex Montgomery, Mt. Washington; Neil Huffman Dodge-Chrysler-Jeep, Louisville; Ray's Chrysler-Dodge-Jeep, Brandenburg; and Zimmer Chrysler-Jeep, Florence.
Chrysler and General Motors are now operating under U.S. government oversight. Reuters has reported that the involuntary terminations are widely expected to lead to a legal challenge from dealers who are independent retail networks protected by state franchise laws.
The government has been pressuring Chrysler and GM to bring their large sales networks in line with those of more successful automakers such as Toyota which has only 1200 dealerships nationwide.
Chrysler said it would not repurchase any new vehicles, tools or parts inventory from terminated dealers but will assist in finding buyers for stock, according to a memo to dealers that was obtained by Reuters.