Car maker to close a quarter of its US dealerships
14 May 2009

Chrysler is to close around a quarter of its US dealerships, according to reports.

Speaking to a bankruptcy court the car maker said it hoped to shut down 789 out of its 3200 dealers.

It was earlier revealed that 286,687 2009 cars - more than three months' supply - were unsold on dealer lots at the time of Chrysler filing for bankruptcy protection in April.

It had forewarned dealers there would be closures and had promised to let them know where before commenting publicly.

In its filing the company reportedly said that half of its dealerships account for almost all of its sales because of changes to roads and growing suburbs.

It has now written to the dealers saying which ones will be shut down.

"It just says whether you're in or out," said Anthony Viviano, president of the Detroit Dodge dealers association.

"Some of my fellow dealers have already called and said they're out. They got the poison letter."

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