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| Chrysler to close 25% of dealers | |
| (10 minutes later) | |
| US carmaker Chrysler has told a bankruptcy court that it plans to close about one quarter of its dealerships. | US carmaker Chrysler has told a bankruptcy court that it plans to close about one quarter of its dealerships. |
| Chrysler said it wants to shut down 789 out of its current 3,200 dealers. | Chrysler said it wants to shut down 789 out of its current 3,200 dealers. |
| Chrysler filed for bankruptcy protection in April, allowing it to carry on trading while protected from its creditors. | Chrysler filed for bankruptcy protection in April, allowing it to carry on trading while protected from its creditors. |
| At the time, it warned some dealerships would close. A spokeswoman said the company would notify its dealers before commenting publicly. | At the time, it warned some dealerships would close. A spokeswoman said the company would notify its dealers before commenting publicly. |
| The carmaker said the sales at many of its dealers were too low. | |
| Just over half of the dealers account for about 90% of the company's US sales, it added. | |
| "In addition, as suburbs grew and the modern interstate system continued to evolve, long-standing dealerships no longer were in the best or growing locations," the company said in its filing. | |
| "Many rural locations also served a diminishing population of potential consumers. Some dealership facilities became outdated. Other locations faced declining traffic count and declining populations." |