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May 25, 2009

11 Mass. Dealers Closure List

Chrysler has asked a New York Bankruptcy Court to allow it to eliminate 789 dealerships in its network, including 11 in Massachusetts.

Tri-State Dodge in Dudley is one of the three Central Massachusetts franchises on the chopping block.

Peter Krause, the dealership’s owner, stressed in an interview with the Worcester Business Journal, that his business isn’t going anywhere.

That’s because he also runs a Toyota/Scion dealership. When the Dodge cars leave his lot, which he expects to be within a month, he and his 40 or so employees will still be selling and servicing cars.

“We are open for business. We are not closing, we are not terminating any people,” he said.

Tri-State will also continue to service Dodge cars, but will be forced to turn away Dodge warranty work after his franchise agreement with Chrysler ends.

Notices went out to the dealerships in danger earlier this month. Krause said he received notice via the mail and via a phone call.

“I don’t know that this was a surprise to me specifically, but it is a surprise for the nation,” he said. Krause was critical of Chrysler’s plan to cut so many dealers.

“Why did they do this? They lost a quarter of their customers,” he said.

“The bottom line is we’re going to lose, but we’re still open and we’re not going anywhere,” he added.

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