Chrysler said Thursday it planned to close 15 auto dealerships in the Washington region, causing angst and outright disbelief among local dealers.
The move comes as part of the company’s plan to shut 789 of its 3,200 dealerships nationwide by June 9, the automaker said Thursday in a bankruptcy court filing. The manufacturer notified the dealerships by letters sent by UPS.
Local dealers lashed out at the news.
“In many cases, these folks are second-, third-generation [dealers],” said Don Hall, president of the Virginia Auto Dealers Association. “It’s a hell of a way to treat a partner that’s been doing business with them for generations.”
Jack Fitzgerald, owner of Fitzgerald Auto Malls, took the biggest local hit, with five dealerships being closed. Fitzgerald owns 14 dealerships in Maryland, Florida and Pennsylvania.
“I think it’s incredible what they’re doing — I really do,” he said. “It’s definitely misguided.”
John and Tammy Darvish, who own more than 25 dealerships selling various brands, will lose two area dealerships — Darcars in Fairfax and Westside Dodge in Potomac.
Tammy Darvish said the move came suddenly, and seemingly without reason.
“You know, it’s a tough hit. You sort of, kind of expect — you don’t know,” she said. “It’s very sad. A very, very sad day.”
Chrysler said the closing dealerships made up 14 percent of the company’s overall sales, and that there would be no appeal process for the affected dealers.
Rick Shaub, who owns Montrose Dodge in Germantown, said he likely would have to declare bankruptcy. Shaub has about $2.5 million in inventory that the company is not going to buy back, he said.
“Certainly, we’re an integral part of the community,” he said, adding that the dealership provides cars for many local events, such as homecoming parades.
Automobiles also bring in a significant amount of local revenue through personal property taxes, and many dealers — like Tammy Darvish — are huge benefactors for local charities.
Shaub, who has been in the location for 30 years, appeared dumbstruck. “I don’t think it’s actually set in, to tell you the truth.”
Darvish said her dealerships’ top priority was dealing with employees.
“This is not about assets and buildings and land and cars — it’s about people right now,” she said. “It’s a much more sentimental hit than anything else.
“There are no winners, whether you were rejected or not,” she continued. “It’s a time where we have to evaluate what it means to be an entrepreneur in the free market, trying to build a company and serve a community.
“Then — it all boils down to getting a package from UPS.”
