Photo by Jessica Stewart / St. Joseph News-Press / Purchase this photo
Customers look at a vehicle on the lot of Car City Chrysler-Dodge-Jeep-Hyundai Thursday afternoon. Chrysler announced plans to eliminate hundreds of dealerships, but the St. Joseph franchise will remain open.
Chrysler announced its intention Thursday to close three of its vehicle dealerships in the region, but its St. Joseph franchise will remain open.
The company said it will seek to end its affiliation with the following dealerships: Atchison Automotive Group Inc., Atchison, Kan.; Tony Martens Dodge Inc., Platte City; and Stan Boos Auto Sales Inc., Hiawatha, Kan.
The three proposed closings are part of an effort to reduce the nation’s 3,200 Chrysler dealerships by about a quarter by early June. Low sales at many of the businesses were cited as a factor in the announcement that could impact 789 dealerships in the U.S. The decisions are subject to appeal.
“I don’t want to talk about it,” Mr. Martens quickly told the News-Press when asked about the Chrysler announcement.
At Atchison Automotive, owner Clay Close said he could weather the loss of the Chrysler portion of his business. He also sells General Motors vehicles.
“It’s not going to impact our store,” Mr. Close said. “Our volume of Chrysler sales ... has always taken a back seat to our GM line. It’ll be an absolutely positive minimal impact.”
The business will continue to sell used Chrysler products and service those products that it sells, he added.
Stan Boos could not be reached for comment.
Meanwhile, two of the area’s Chrysler dealers discovered that the company wants to retain them in its reorganization.
Carroll Cathey, president and co-founder of Car City Chrysler-Dodge-Jeep-Hyundai in St. Joseph, said he views the announcement as “business as usual” for his store.
“Of course, we’re happy,” he said. “We’re pleased to find out that we’re designated to be assigned to the new company.”
Joe Laukemper, owner of Laukemper Motors in Mound City, admitted that many franchised car dealers are experiencing apprehension because of the nation’s economic woes.
“We are breathing easy,” he said. “I’m the happiest man in the world. ... We’re certainly in uncharted waters.” Laukemper also sells GM products.
Chrysler, which is in bankruptcy protection, said it wants to eliminate the dealership affiliations by June 9.
Ray Scherer can be reached at
rscherer@npgco.com. The Associated Press
contributed to this story.