A Chrysler Owner's Guide to Dealership Closings

Where will you service your Chrysler when the local dealership closes? Answers to that and other questions facing owners and buyers
By Kimberly S. Johnson,

So your local Chrysler dealer is slated to close, and a nearby General Motors (GM) dealer could get the ax, too. What happens if you need service on your car?

It's a natural question in the changing automotive landscape, as those two U.S. automakers attempt to restructure in and out of bankruptcy court. In bankruptcy court filings, Chrysler said May 14 it would shutter 789 of its dealerships—about 25% of them—across the country. GM dealers are awaiting word on which 1,100 of them will not see their contracts renewed when they expire at the end of September 2010.

If you live in a major metropolitan area, you could simply drive to another dealership to get your car serviced, even if it is a few extra miles away. However, you might have some difficulties if you live in a rural town or in an area where there are no other dealerships.

Here are some questions and answers on how the Chrysler dealership closings may affect car owners and buyers.

Is my Chrysler warranty still in effect?

Yes. Your vehicle is still covered under whatever bumper-to-bumper and powertrain warranty you received when the car was purchased.

Chrysler Vice-President Steven Landry said the company will be notifying the 3.5 million customers who bought their vehicles from the affected dealerships where they'll need to go now to service their vehicles. They hope to do this by early June.

Will another dealer honor my warranty?
Your warranty will be honored by another certified Chrysler dealer. It won't be honored by another automaker's dealership. And Chrysler said it will not pay its closing dealerships for repair work done under warranty after June 9.

Regardless of my warranty status, can I go to another automaker's dealer to get my car serviced or repaired?

That depends. If you can, you'll have to pay for it.

While almost any service department can do routine vehicle maintenance, such as tire rotations and oil changes, complex repairs might be a challenge, particularly with problems that are detected by running an electronic diagnostic test on the vehicle.

"When it comes to diagnostic equipment and specific tools, our dealers would not be set up to handle that," said Honda Motor America spokesman Ed Miller.

However, at Bob Maxey Ford in Detroit, service manager Wayne Dallwein says he has a diagnostic tool that allows mechanics to test any automaker's vehicle. He said not all dealerships have that kind of equipment, but many independent mechanics do.

"People need to find out from their closest dealer if they have the tools and technology and the expertise to work on your Chrysler," he said. "Go in and see what their capabilities are. You want to establish a relationship with a new dealership before your car needs a repair."

Is this a good time to buy a new Chrysler? Will closing dealers have a fire sale?
Perhaps. But while "everything must go," the dealers still need to make money.

Chrysler already has some of the most generous incentives in the industry. According to Edmunds.com, a site that offers information to car shoppers, Chrysler offered $4,383 in incentives per vehicle in April, down from $4,889 in March but up from $3,795 in April 2008.

Cook Chevrolet in Craig, Colo., which also sells Chryslers, was notified Thursday that its agreement to sell Chrysler's Jeep vehicles had been discontinued. Scott Cook, who owns the business with his father, said the dealership has about 18 Jeeps to sell or move to other area Chrysler dealerships.

Cook said he hasn't decided whether to hold a fire sale. Either way, he said he'll explain the warranty situation to potential buyers.

"We'll disclose there's a strong possibility that we wouldn't be able to do warranty work here, but area Chrysler dealerships can do the work," he said.



Readers Comments

Bill Odum
May 18, 2009 12:37 AM GMT
It would take savvy intervention by someone in the government to bring the auto manufacturers and parts supply people together to set up all brand Ford, GM and Chrysler maintenance shops. All the components are there cars, parts, mechanics, empty dealerships. What is needed is management that thinks different. And that is probably in very short supply!


Leanne McElligott
May 17, 2009 4:29 AM GMT
The Chrysler dealership my Jeep Liberty is at tells me their owner will not cover any large warranty repair because they do not know if corporate will actually pay them. Corporate tells me they cannot force a dealership to do the warranty repair work. I have two more years of payments on this car, have been sharing a car w/ my husband for 6 months now & am now stuck in the middle. Noone is taking the blame. They are blaming each other and NOT repairing my car (which is still under warranty). The Attornet Generals offcie has had no luck nor has any state rep., the BBB or the sonsumer protection agency that I tried. HELP! What should I do?? Leanne


billd
May 17, 2009 2:04 AM GMT
Chrysler products are about to experience incredible depreciation. When Oldsmobile tanked, I bought my daughter a used, 3 year old Alero with 40K miles on it for just $5K. But I can still get parts for it. Chrysler, now bankrupt will soon face a big problem supplying unique parts. When that word spreads, nobody will want to buy a Chrysler product.


hotty
May 16, 2009 5:06 PM GMT
this is what happens when we sell out to other countrys and we lose jobs and the only jobs are service jobs left for us to do and now we cant buy cars etc on the wages for service jobs . we need to get it together before we become a 3rd world country


carguy
May 16, 2009 2:06 PM GMT
And Interconnect: what on earth are you talking about? The only dealerships Chrysler is closing are in the US. The only GM dealerships closing are in the US and Canada. This has nothing to do with their global operations (which GM is still break-even or somewhat profitable on, depending on the region). And BTW, there is risk with any support contract: if the vendor isn't there to support you, you get no support. There's little you can do in that regard, and as these events show, even the biggest can fall.


carguy
May 16, 2009 2:03 PM GMT
This article is misleading in one way: many non-manufacturer mechanics (including at dealerships for other makes) can (and do) perform warranty work, and will be reimbursed by the manufacturer. There is paperwork involved, and you'll have to pick ones that have the diagnostics gear, but they are out there. While it is usually simpler for someone to go to a dealer, the manufacturer's dealers aren't your only choice for warranty work.


Interconnect
May 16, 2009 7:53 AM GMT
World's biggest declaration of Chapter 11, liquidation happened in the US. Consumers world wide trusted GM, Chrysler, and major US brands, from decades of faith in the brand in valuable asset, that makes their lives better and going. What will happen to the owner of a Chevy Joy, or Jeep in countries with only one or two dealerships, and if they close down. The onus is with the companies and the warranties, support, parts are the responsibility of these poor, innocent who has taken the trust of their parents to their children. The US banks should make sure Made in US is good for all who invested in it.