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Local Dealers Escape Chrysler, GM Axes
Although Warrenton car dealerships weren’t affected, the consolidation of Chrysler and General Motors dealer franchises hit close to home last week.
Within two days, Chrysler LLC announced it would eliminate approximately 800 dealerships and General Motors Corp., said it would drop about 1,100 dealerships nationwide. As a result, a still uncertain number of GM dealers and 26 Chrysler dealers are being forced out of business in Virginia.
Of the 26 Chrysler dealers that will close their doors in coming months, one is in Fairfax, two in Leesburg and one in Manassas. One dealership in Fredericksburg and two in Winchester will also be closing.
Jim Gramm owns the Safford Dodge/Jeep/Chrysler dealership in Warrenton. Although his franchise will stay in business, Gramm said he knows other car dealers who weren’t as fortunate.
“For the most part these are family businesses, and the people who own them are second or third generation [car dealers],” Gramm said. “It is pretty devastating.”
In many cases, the dealerships that sold only one type of car are being eliminated, Gramm said. Those in metropolitan areas seemed to be targeted more, he added.
“[Chrysler] can’t support the dealerships that sell only one model," he said. "So for us having all three [makes] is half the battle.”
Based on their success, Andy Budd, owner of Country Chevrolet, and Jim Harris, who owns Jim Harris Buick/Pontiac/GMC, said they both expected to stay in business.
See the Fauquier Times-Democrat for the complete story...
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