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Tuesday, June 9, 2009

Colorado Chrysler dealers cope with brand loss



In this photo taken Sunday, the company sign hangs near an unsold 2009 Grand Cherokee at a Chrysler-Jeep dealership in the south Denver suburb of Englewood. Chrysler LLC's U.S. sales fell 47 percent in May, but the company says being under bankruptcy protection did little to deter customers from purchasing its vehicles.
In this photo taken Sunday, the company sign hangs near an unsold 2009 Grand Cherokee at a Chrysler-Jeep dealership in the south Denver suburb of Englewood. Chrysler LLC's U.S. sales fell 47 percent in May, but the company says being under bankruptcy protection did little to deter customers from purchasing its vehicles.ENLARGE
In this photo taken Sunday, the company sign hangs near an unsold 2009 Grand Cherokee at a Chrysler-Jeep dealership in the south Denver suburb of Englewood. Chrysler LLC's U.S. sales fell 47 percent in May, but the company says being under bankruptcy protection did little to deter customers from purchasing its vehicles.
AP Photo
Silverthorne's Vista Auto Group
Fourteen of Colorado's 45 Chrysler franchises may be losing Chrysler brands, but in Summit County, Vista Auto Group is still going strong with the full Chrysler line.
“We plan to be the Chrysler Jeep Dodge group for Summit County for a long, long time,” said Robert Farnett, general manager for Vista Auto Group in Silverthorne.
Farnett said that, while business has been down, it's still been steady — especially on the service side of the operation. And even if Chrysler has seen better days, he said he's hopeful for the brand's future.
“We're really looking forward to the new Chrysler that's being formed,” he said. “The government is backing the warranties, and it'll be a better situation.”
Farnett added that the Silverthorne dealership has not seen the “strong decline” the metro dealers have experienced. The mountain area still has demand for Jeeps and Dodge trucks, he said, in addition to the Chrysler lineup of cars and minivans.
New models will be on their way soon, he said.
“The 2010 Jeeps look great, as well as the 2010 Dodge trucks,” Farnett said.
—Alex Miller
Jeff Pollard is stocking up on used Jeeps and imports for his family's dealership in Montrose after getting their Jeep franchise pulled by Chrysler.

Hundreds of Chrysler dealerships, including Pollard Bros. Motors, have until today to shutter their Chrysler operations. Chrysler cut 789 of its 3,188 dealers as part of its federal bankruptcy filing in May.

Fourteen of Colorado's 45 Chrysler franchisees are losing Chrysler brands.

"We are calling it Black Tuesday when 14 profitable dealers who were supporting their brands are being terminated for no apparent reason," said Tim Jackson, president of the Colorado Automobile Dealers Association.

Pollard said his family's store exceeded sales requirements and customer-service standards but that their building lacked the latest bells and whistles.

"They care more about what the building looks like than selling cars," he said.

Pollard is converting to a used-car, service and all-terrain-vehicle operation.

"We're rolling with it," Pollard said. "I feel bad for customers, mostly."

Like Pollard, some of the affected Colorado dealers are becoming used-car operators; those with other brands are turning to them for increased sales; and two are closing.

Dealers were given 26 days' notice to shut down. Many have joined a lawsuit, but so far efforts have been unsuccessful, Jackson said.

Since Chrysler's announcement, General Motors, which recently filed for bankruptcy, notified dealers it would not retain some franchise agreements. Up to 15 in Colorado were notified, Jackson said.

GM dealers were given more time than those with Chrysler to sell inventory and close.

"This is so un-American, I've never seen anything like this," said Jay Cimino, owner of Phil Long.

Phil Long Denver Jeep today becomes Phil Long Denver Value Car.

"What we are going to try to make out of this thing is the very best used-car customer experience in the city of Denver," Cimino said.

At Cook Chevrolet in Craig, Scott Cook and his family are turning their attention to their Chevrolet and Subaru brands.

"We did everything we could to liquidate the Jeeps," he said. "We have to move on."

In Delta at Bill Hellman Motor Co., the small team of nine employees is now focused on selling Toyotas and Fords.

Bill Hellman said he's still hopeful, though, that things will change.

"A person always has hope before it's over," he said. "Anything can happen."

Elizabeth Aguilera: 303-954-1372 or eaguilera@denverpost.com


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