LUBBOCK, TX (KCBD) - Twenty-five percent of Chrysler dealerships are losing their Chrysler line or shutting down completely - including two on the South Plains.
The decision comes as the struggling auto maker is restructuring after filing for bankruptcy. Chrysler requested approval from federal bankruptcy court to terminate 789 dealership agreements effective June 9th. The company filed for bankruptcy at the end of April and says to remain viable, they must make the cuts. Industry groups estimate job losses could near 40,000.
The two dealerships on the South Plains that are expected to lose their Chrysler line of vehicles are Bobby Trent Motorplex in Denver City and Stanley Brownfield Motorplex in Brownfield. The dealers likely will have a right to appeal to get off the list. The move could have a devastating impact on cities across the U.S., costing jobs and tax revenue.
Coming up on NewsChannel 11 at 10, we'll hear from a local dealer who breaks down Thursday's announcement and what it means for the South Plains.
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