DENVER, Colo. -
A bankruptcy judge says Chrysler can go ahead with its plan to terminate the franchises of 789 of its dealers. The New York judge issued the order late Tuesday.
It says the franchises can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately.
Chrysler LLC says it needs to cut its dealer ranks by about 25-percent as part of its plans to cut costs and quickly emerge from Chapter 11 protections.
14 dealers here in Colorado are among those being forced to close. They are some of the most successful Chrysler dealers in the state. And the employees feel betrayed for the most part, by a company they believed in.
A black Jeep Wrangler is the very last new Jeep left on this lot in Denver on "Black Tuesday" as it's been dubbed.
"We thought we were doing all the things right," said Jim Fynes of Phil Long Denver Chrysler Jeep, on South Wadsworth. "We're a large selling dealer, very profitable."
Fynes owns the dealership, one of the highest volume stores in the state, already being turned into Phil Long Value Used Cars.
"It's kinda somber you know, obviously we've been a Chrysler dealer for 20 years here and then to lose that is a sad day but we're also knowing that we still have our customers out there dependant on us and our employees are dependant me and we're going to make this thing work," said Fynes.
An employee here told me he feels lucky he still has a job, but is uncertain about what might happen.
He's like many who spent most of their lives selling cars, only to watch the whole industry now in turmoil
"Frustration, aggravation, confusion and to a degree anger." said Tim Jackson, president of the Colorado Automobile Dealers Association.
Jackson says he's heard from dealers all over the state, who feel cheated that Chrysler got government bailout money, only to shut down profitable businesses.
"The direct impact will be in excess of 500 lost jobs in those dealerships," said Jackson, "Those are jobs that are going away that won't be easily replaced."
The Go Dodge Southwest franchise on Wadsworth was also shutdown and its entire remaining inventory moved to another dealership just a few days ago.
Some of the 14 dealers have other brands, and several like Phil Long will sell used cars.
When GM dealerships begin shutting down next year, the number of jobs lost will top 2000 in Colorado.
I also talked to the owner of Northglenn Dodge, who says he's being forced to let go of about half his longtime employees now as a used car dealer. And two large dealers, Burt Chrysler and Burt GMC down in Parker, for example, are both being shutdown by the two automakers, which will have a major impact on that area affecting other jobs as well.
It says the franchises can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately.
Chrysler LLC says it needs to cut its dealer ranks by about 25-percent as part of its plans to cut costs and quickly emerge from Chapter 11 protections.
14 dealers here in Colorado are among those being forced to close. They are some of the most successful Chrysler dealers in the state. And the employees feel betrayed for the most part, by a company they believed in.
A black Jeep Wrangler is the very last new Jeep left on this lot in Denver on "Black Tuesday" as it's been dubbed.
"We thought we were doing all the things right," said Jim Fynes of Phil Long Denver Chrysler Jeep, on South Wadsworth. "We're a large selling dealer, very profitable."
Fynes owns the dealership, one of the highest volume stores in the state, already being turned into Phil Long Value Used Cars.
"It's kinda somber you know, obviously we've been a Chrysler dealer for 20 years here and then to lose that is a sad day but we're also knowing that we still have our customers out there dependant on us and our employees are dependant me and we're going to make this thing work," said Fynes.
An employee here told me he feels lucky he still has a job, but is uncertain about what might happen.
He's like many who spent most of their lives selling cars, only to watch the whole industry now in turmoil
"Frustration, aggravation, confusion and to a degree anger." said Tim Jackson, president of the Colorado Automobile Dealers Association.
Jackson says he's heard from dealers all over the state, who feel cheated that Chrysler got government bailout money, only to shut down profitable businesses.
"The direct impact will be in excess of 500 lost jobs in those dealerships," said Jackson, "Those are jobs that are going away that won't be easily replaced."
The Go Dodge Southwest franchise on Wadsworth was also shutdown and its entire remaining inventory moved to another dealership just a few days ago.
Some of the 14 dealers have other brands, and several like Phil Long will sell used cars.
When GM dealerships begin shutting down next year, the number of jobs lost will top 2000 in Colorado.
I also talked to the owner of Northglenn Dodge, who says he's being forced to let go of about half his longtime employees now as a used car dealer. And two large dealers, Burt Chrysler and Burt GMC down in Parker, for example, are both being shutdown by the two automakers, which will have a major impact on that area affecting other jobs as well.
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