Dear Employees,
As an important part of our creation of a new company with Fiat, today we
took a major step toward rightsizing our U.S. dealer network and aligning it
with the realities of a smaller overall market. Our goal is to create a
dealer network that is stronger, more profitable and better able to meet and
exceed the high expectations of today’s car and truck buyers.
To begin this difficult process, Chrysler LLC today filed a motion with the
U.S. Bankruptcy Court seeking to reject certain U.S. dealer agreements, and
submitted a list of U.S. dealer agreements to be assigned to the buyer of
its business assets. Subject to court approval, 2,392 Chrysler, Jeep® or
Dodge dealers will continue with the new company in a global alliance with
Fiat once the sale is complete. Also, pending court approval, 789 current
U.S. dealers will see their agreements with Chrysler LLC rejected and will
discontinue selling new Chrysler, Jeep and Dodge vehicles effective June 9.
We appreciate the support of all of our dealers over the years and sincerely
regret the need to take the painful action of discontinuing our relationship
with some of them. As you know, the auto industry is going through an
unprecedented falloff in sales in the United States and international
markets. We have adapted by reducing the number of vehicle models we build,
our production capacity and employees. Now we need to make similar
reductions in the size of our dealer body.
The decisions to accept and reject dealers were based on an objective,
data-driven review process that was rigorous and thoughtful, taking a number
of factors into consideration. We plan to maintain "business as usual" with
all of our dealers through this transition, including honoring warranty and
incentive payments. We are committed to working with all dealers to ensure
an ongoing positive relationship with customers. To ease the burden on
dealers whose agreements have not been assumed, Chrysler will work to assist
in the redistribution of new vehicles and parts currently held in their
inventories.
As I wrote Tuesday, we have signed an agreement with GMAC Financial Services
to provide automotive financing products and services to our dealers and
customers going forward. A stronger dealer network, supported by GMAC’s
long-term finance options for dealerships and customers, is critical to our
viability. A smaller dealer network will help increase sales and profits at
individual dealers, enabling them to better compete with our marketplace
competitors instead of battling each other for market share.
Additional information, including the motions filed, is available at
www.chryslerrestructuring.com.
Thank you all for the support you’ve given our dealers through referrals and
by continuing to be informed and optimistic ambassadors for Chrysler, Jeep®
and Dodge products. Our quality has never been better and our fuel economy
performance is improved on 73 percent of our current models. With our ENVI
electric-drive vehicles, all-new versions of the Jeep Grand Cherokee,
Chrysler 300, Dodge Charger and Dodge Durango, and access to Fiat platforms
and technology soon to come, our customers — and all of us — can look
forward to even more exciting vehicles from a new and vibrant Chrysler in
the near future.
Bob
Thanks,
Tom Hargrave
HYPERLINK "http://www.kegkits.com"www.kegkits.com
HYPERLINK "http://www.kegkits.com/JABF/"http://www.kegkits.com/JABF/
256-656-1924
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