Chrysler to cut ties with 22 dealers in Iowa - KWWL - Eastern Iowa Breaking News, Weather, Closings

Chrysler to cut ties with 22 dealers in Iowa

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CEDAR FALLS (KWWL) --  Chrysler announces plans to cut ties with nearly 800 dealers, including 22 in Iowa.

Many dealers have already contacted legal counsel in a fight to stay open.

Some dealers are telling customers it's business as usual.

Others say they've begun a liquidation sale.

Lots of makes and models of Chryslers are ready to drive off the lot at Holdiman Motor in Cedar Falls.

Chrysler leaders believe Holdiman and 21 other Iowa dealers are underperforming and should close.

The dealer says news of his demise is premature.

"There will be a couple of other cuts. So dealers will be going back on the list and some coming off. For us, we're going business as usual til we get a definitive answer from the factory," said Tom Holdiman.

Mickey Chrysler-Dodge is 1 of 2 Chrysler dealers in Linn County but the only one on the closure list.

"No reasonable offer refused" is now part of the slogan for a bankruptcy liquidation sale.

"It's sad but my motto in life is I trust my lord, I trust the process, and there's joy in the journey and this is life and you keep going on," said Karen Mickey.

Now, the company is mulling over its options while the 45 member workforce continue their work.

In Coralville, McGurk-Meyers Chrysler vows it's not going anywhere.

It's also on the list.

Back in Cedar Falls, Tom Holdiman says he hopes his dealership is part of the new Chrysler.

"I hope that they've undergone some big changes and everybody's much more profitable and the bottom line is the consumer profits too with better fuel economy and much greener cars," said Holdiman.

Chrysler plans to make the action final June 9.

40 dealerships in Illinois are on the closure list with 18 set to close in Wisconsin.

Iowa dealers on the list include:

  • 1st Ave. Chrysler Inc.
    Cedar Rapids
  • Anchor Motor Co., Inc.
    Osceola
  • Beecher In
    Shenandoah
  • Benson Motor Inc.
    Ames
  • Bill Lyons Car Company
    Mason City
  • Delzell Motor Co.
    Burlington
  • Des Moines Chrysler Plymouth
    Des Moines
  • Friday's Service Inc.
    Conrad
  • Harlan Auto Mart Inc.
    Harlan
  • Holdiman Motor
    Cedar Falls
  • Irwin Auto Co. of Winterset
    Winterset
  • Johnson County Motors
    Coralville
  • Ken Krause Motors
    Emmetsburg
  • McCormick Motors
    Ida Grove
  • Mike Finnin Motors
    Dubuque
  • Motor Inn Inc.
    Estherville
  • Motor Inn of Le Mars
    Le Mars
  • Rhoden Auto Center
    Council Bluffs
  • Ron Willey Ford
    Nevada
  • Schuelke Auto Company
    Storm Lake
  • Shottenkirk - Illinois Inc.
    West Burlington
  • Willey Inc.
    Ames

On Thursday, Chrysler told a bankruptcy court in New York that it plans to eliminate a total of 789 of its 3,200 dealers as part of its restructuring process. It's estimated that more than 38,000 people will lose their jobs as a result.

The relationships with the dealers are scheduled to end on June 9, but the dealers can appeal to get off the list.

Chrysler, which has received $4 billion in government loans, has filed for Chapter 11 bankruptcy protection in New York.

Online Reporter:  Bob Waters

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