Chuck Nash Jeep Eagle, the original Nash automobile dealership that started in 1976, is among 789 locations on the Chrysler LLC chopping block as the automaker tries to restructure in bankruptcy.
Chrysler told a New York bankruptcy court Thursday that it wants to shed about one-fourth of its 3,200 dealerships by June 9, arguing that just more than 50 percent of its dealerships account for 90 percent of its U.S. auto sales.
Dealers were told by the company Thursday if they would be eliminated or saved.
A woman answering the telephone at the Nash dealership on US 123 and Interstate-35 said the company had no comment. Nash could not be reached for comment.
A New York bankruptcy judge is scheduled for a June 3 decision as to whether or not it will approve Chrysler’s motion.
Chrysler reportedly told the bankruptcy court that more than half of the dealerships being eliminated sell fewer than 100 vehicles per year. The company added that it needs to consolidate its dealerships to be more competitive. For example, the Chrysler filing reportedly said its average dealership sold 303 vehicles in 2008, compared with about 1,200 per Honda dealership and nearly 1,300 per Toyota dealership.
Chrysler has operated under bankruptcy protection since April 30. The company, which has received $4 billion in federal loans, is down 46 percent in sales for the first four months of this year compared with 2008, when the company reported a $16.8 billion net loss.
Nash opened the SH 123 location in 1976, when he “broke off” from the family auto dealership. Nash’s grandfather, John Nash, opened Capital Chevrolet in Austin in 1926.
Last November, Nash opened a new GMC dealership with 42,700 square feet under roof just south of Yarrington Road on Interstate-35. As Nash cut the ribbon, General Motors was asking the federal government for help. But Nash remained optimistic.
“Don’t forget, when you’re reading about everything and hearing about everything, this is Texas and Texas is special, especially between Austin and San Antonio,” Nash said as he stood behind the uncut ribbon.
General Motors is reportedly telling 1,100 dealers this week that it will not renew their franchises when they expire at the end of September 2010.Email | Print