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May 14, 2009

11 Mass. Dealers On Chrysler 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 today. 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.

Krause's main complaint is that the bankruptcy court is not requiring Chrysler to accept unsold vehicles or parts. He said it will be left to him to get rid of spare Dodge bumpers around the shop or risk losing money, a fact he is resigned to.

"The bottom line is we're going to lose, but we're still open and we're not going anywhere," he said.

The dealerships were named in a filing made today by the bankrupt American automaker. The Bay State dealers are:

  • Melrose and Wellesley Dodge LLC, dba Melrose Dodge, 732 Newburyport Tpke., Melrose
  • Midway Motors Inc., 510 Cochituate Rd., Framingham
  • Motor Mart Auto Sales Inc., dba Moto Mart Dodge, 800 Washington St., South Attleboro
  • Pride Chrysler Jeep, 11 Taunton Ave., Seekonk
  • Seacost Motors of Salisbury Inc., 2 Merrill St., Salisbury
  • South Shore Chrysler Inc., 178-180 Washington St., Braintree
  • Stagg Chevrolet Inc., dba The Cape Cod Auto Mall, 182 Route 137, East Harwich
  • Sullivan Brothers Chrysler Dodge Inc., 5 Gallen Rd., Kingston
  • Tri-State Automotive Associates, dba Tri-State Dodge, 191 W. Main St., Dudley
  • Westboro Motors Inc., 271 Turnpike Rd., Westborough
  • Westminster Dodge Inc., 710 Morrissey Blvd., Dorchester

Read the full list here.

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