Russwood Chrysler Eliminated under Chrysler Bankruptcy

Chrysler LLC wants to eliminate roughly a quarter of its 3,200 U.S. dealerships by early next month, including nine in Nebraska. Chrysler said in a bankruptcy court filing Thursday that the network is antiquated and has too many stores competing with each other.

In a motion filed with the U.S. Bankruptcy Court in New York, the company said it wants to eliminate 789 dealerships by June 9. Many of the dealers' sales are too low, and just over 50 percent of dealers account for about 90 percent of the company's U.S. sales. The nine listed for Nebraska are in Arapahoe, Auburn, David City, Hastings, Lincoln, Milford, Omaha, Scottsbluff and West Point.

The following is a news release from Russwood Chrysler of Lincoln, one dealership eliminated under Chrysler bankruptcy:

Lincoln, NEB – Today, Russwood announced it has received notice from Chrysler, LLC that the company has filed a motion to discontinue Russwood's new car franchise as part of Chrysler's bankruptcy filing.

“Russwood's history of providing Chrysler products to the Lincoln community dates back 80 years,” said Doug Mathers, Russwood's General Manager. “Even today, we continue to outpace regional Chrysler dealers in service, parts, and customer loyalty.”

“Reducing dealerships should be left to natural competition,” stated Mathers. “A forced reduction by Chrysler will not benefit customers, will not benefit the community, and will not benefit Chrysler.”

Regardless of the bankruptcy ruling on the motion, Russwood will continue to grow its pre-owned vehicle sales and service. “We are in the automotive business for the long run,” continued Mathers. “Our focus remains on providing quality products, professional service, and customer satisfaction.”