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Chrysler Dealerships "on the Verge of Collapse"

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Chrysler Dealerships "on the Verge of Collapse"

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    NEW YORK — Chrysler dealers who have filed affidavits with bankruptcy court say the automaker's dealer network is "extremely fragile and on the verge of collapse."

    "The uncertainty surrounding the Chrysler dealer network is killing dealers," said James J. Arrigo, co-chair of Chrysler's National Dealer Council, in an affidavit regarding Chrysler's Chapter 11 bankruptcy filing.

    Arrigo is the owner of two Florida Dodge, Chrysler and Jeep dealerships and is considered one of the automaker's top dealers.

    "Many Chrysler dealerships are in financial distress and the situation has deteriorated rapidly in recent weeks," Arrigo said. "This is the most dire situation I have seen in the car business."

    He added: "Nearly every potential buy that walks in my dealership has either raised the issue of Chrysler's viability or asked sales staff if Chrysler will 'be around.' The Chrysler dealership network is extremely fragile and on the verge of collapse."

    Inside Line says: Already panicky consumers are afraid to buy Chrysler, and that mood is making the bankruptcy situation much worse, dealers say. — Anita Lienert, Correspondent

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