WREX.com – Rockford’s News LeaderChrysler deals out local dealers

Chrysler deals out local dealers

By Bob Schaper

ROCKFORD (WREX) - Three local dealers are told they can't sell new Chryslers anymore.

Lou Bachrodt Jeep, Strandquist Motor and Belvidere Motors are on the list of nearly 800 dealers Chrysler wants to shut down. But George Schaffner, president of the Rockford New Car Dealers Association, says don't write them off yet.

"Just because a dealer may end up on a list, doesn't put them out of business," he said. "They're still a viable part of their community, they're still a viable part of the sales environment. It just means that potentially down the road they may not have new cars under that brand to sell."

Dean Zimmerman is sales manager at Strandquist. He said the dealership will definitely stay open and nobody will lose their jobs.

"Chrysler filed bankruptcy, we didn't," he said.

"They still have an option for a used car business and they still have parts and service that they continue to offer," Schaffner said.

Lou Bachrodt will continue to sell Chevrolets, Volkswagens, BMWs and other brands.

Schaffner said by shrinking the number of dealers, Chrysler may be able to charge more for new cars. That's because as the distance between dealerships grows, the more difficult it is for potential buyers to price shop.

He blames part of the mess on the increase in foreign dealerships.

"You know our fair trade agreement isn't fair," he said. "We're importing more products than we're exporting, so there's inequities. So somewhere you have to make an adjustment. The pie is still the size of the pie, it's now just divided between more people."