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How would you like to get this letter in the mail!!!Ouch  
 
Chrysler memo says 789 dealers will close by June 9  
 
Chrysler LLC will eliminate 789 dealers, or 25 percent of its U.S. network, by June 9, according to a memo sent today to retailers in one sales region.  
 
 
 
Dealers are learning of their fate via UPS letters to be delivered this morning, the memo says.  
 
Dealers will get 23 business days for a "court review" of their cases, according to the memo, from a sales manager to district dealers.  
 
"All of this information is subject to change," the memo says. Chrysler officials said they could not comment until documents are filed in U.S. Bankruptcy Court.  
 
The National Automobile Dealers Association estimates that an average U.S. dealership now employs about 48 people, so an estimated 37,872 people stand to lose their jobs because of Chrysler's decision today.  
 
"Chrysler will not be required [per bankruptcy law] to buy back the vehicles or tools and parts from rejected dealers," the memo says. "We will match you with an accepted dealer(s) to buy your parts, tools and vehicles."  
 
The memo says Chrysler will send letters to 4 million customers of the rejected dealers after June 9, when the stores are to close.  
 
In the memo, Chrysler says that after the closings, 80 percent of its dealers will carry all three brands under one roof, compared with 62 percent currently. Since early 2008, Chrysler has been consolidating its dealer body under Project Genesis, a plan to put the Dodge, Jeep and Chrysler brands under one roof wherever possible.  
 
Highlights of Chrysler's dealer elimination plan  
• 789 dealers being informed of rejection: 24.7 percent of the dealer body.  
• June 9 will be their last day of business.  
• Bankruptcy Court review process runs from May 14 to June 9.  
• Chrysler, because it is under Bankruptcy Court protection, will not be required to buy back vehicles, tools or parts from rejected dealers.  
• Chrysler will match rejected dealers with accepted dealers, who will buy back parts, tools and vehicles.  
• Rejected dealers will continue to sell vehicles, and Chrysler will continue to pay incentives and warranty charges until June 9.  
• Chrysler says it won't abandon retail customers, and will pay for "towing services, etc."  
• About 4 million customers of rejected dealers - "orphan owners" - will get letters explaining the situation.  
• All decisions remain subject to change.  
 
 
 
SOURCE  
www.autonews.com