Bankruptcy affecting 21 Jeep, Chrysler dealerships in Indiana

About 800 dealerships across the nation will lose their Chrysler and Jeep franchises this year. Twenty-one of those dealerships are in Indiana.

Chrysler filed with U.S. Bankruptcy Court last week resulting in the rejection of U.S. dealer agreements. Chrysler said it plans to help dealerships transition with the new agreement. But dealerships are still feeling the effects of the agreement and the failing auto industry.

Some dealerships are able to stay open despite losing the Chrysler franchise because they still sell other cars.

Marilyn Bellessa, an employee for Tomkinson Dodge in Fort Wayne said her dealership won’t see a huge effect from losing Chrysler and Jeep franchises.

“We still have other automotive franchises, so business is usual here,” Bellessa said.
The O’Daniel Motor Sales dealership in Fort Wayne will be keeping its Chrysler and Jeep franchises as well as picking up another Chrysler franchise June 9, said Craig Wescrock, manager of O’Daniel’s Jeep and Chrysler department.

Wescrock said his dealership is able to maintain success in the unstable automotive industry.

“Our sales went up 30 percent last year, we just sold 13 jeeps yesterday and we are currently hiring,” Wescrock said. “We have not been impacted.”

Some dealerships like Bob Lueger Motors Inc. in Jasper, Ind., will still see an effect despite maintaining sales in its Buick and Pontiac franchises.

Bob Leuger has co-owned the 42-year-old dealership with his four brothers since 1973 and said the dealership will see a drop in both sales and service operations from losing its Chrysler and Jeep franchises.  

Lueger is looking for ways to adjust for the future of the automobile industry.

“We will be losing our Buick franchise in 2010, so we might pick up a foreign franchise or try to pick up another domestic one,” he said. “These are challenging times for people in the auto industry. There’s a lot of anxiety and we are hoping for the best.”