Chrysler seeking to sever ties with local dealerships - KTRE.com | Lufkin and Nacogdoches, Texas

Chrysler seeking to sever ties with local dealerships

LUFKIN, TX (KTRE) - Two area Chrysler dealerships, Wayne Williams Motor in Crockett and San Augustine Motor will no longer be affiliated with the automotive company, according to a legal filing.

As part of their bankruptcy filing, Chrysler is asking for court approval to cancel their dealership agreement with these two dealerships, plus 787 other dealerships across the U.S.

Chrysler will continue its relationship with dealerships in Lufkin, Nacogdoches, Alto and Center.

Chrysler LLC has told a bankruptcy court it plans to eliminate 789 of its dealers -- or about 25 percent of them -- across the country as part of its restructuring process.

The automaker has about 3,200 dealers but says that's too many.

It wants to have stronger, more profitable dealers with better facilities.

Chrysler spokeswoman Kathy Graham says the company will notify specific dealers before commenting publicly.

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.

Other dealerships in East Texas which Chrysler is looking to sever ties with:

* Canton Motors.

* Dewey Moore Ford/Chrysler in Hughes Springs.

* EH Green Motors in Odem.

* Jack Diamond L-M in Longviews.

* Mike Pile Motors in Tyler.

* Snow Motors LLC in Palestine.

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