WEST MICHIGAN—
Nearly 800 Chrysler dealerships know they're on the chopping block, part of the automaker's plan to reorganize under Chapter 11.Chrysler's asking a bankruptcy judge to cancel hundreds of contracts with dealers. Eight West Michigan dealerships will be impacted by the company's reorganization. The dealers found out their contracts with Chrysler could end next month.
Elhart Automotive Campus in Holland started selling Jeep 30 years ago, and added Dodge in 1987.
"We put a lot of sweat into the franchises over the years and it's been very good to our family business and we in turn have been good to the Chrysler Corporation," Jeff Elhart told FOX 17 News.
It was tough to learn Chrysler wants to end their franchise agreement, but Jeff Elhart is adamant: the dealership, service department and collision shop will remain open.
"Elhart Automotive Campus is not going away, we've been in business for 44 years serving the greater Holland community," Elhart said.
Down the street, Ver Hage Chrysler is also on the list; a family with nearly a century of selling cars in Ottawa County. Bollingers in Lakeview and Sieman's Jeep in St. Joe made the list, as did three Kalamazoo dealers: M & M Dodge, Orrin B. Hayes Jeep-Eagle, and Maple Hill Chrysler. No dealerships in the Grand Rapids area are on the list, which was surprising to CSM Auto Analyst Jim Gillette.
"I'm really not sure how that Kalamazoo situation fit in when you compare it to Grand Rapids but Grand Rapids certainly dodged a bullet on this one I think," Gillette said.
Chrysler is moving to have it's dealers sell all three lines, Chrysler, Dodge and Jeep, under one roof. While job cuts are unavoidable, experts believe it's good for car buyers.
"There's gonna be a lot of cars and trucks out there that they can get a pretty good deal on - when you close a dealer ship or are in the process of winding down a dealership, you've got excess inventory," Gillette said.
The Elhart Family diversified: the "Automotive Campus" also sells Nissan, Hyundai, GMC, as well as Pontiac, though GM is planning to stop producing the Pontiac line.
"We'll continue to be in car business just we won't have those two products, Dodge and Jeep, right at this point, although we are going to appeal the process," Elhart said.
Nothing is a done deal yet; dealers can appeal, or present a new plan to company leaders. Some dealers are considering a legal challenge.
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