RALEIGH, NC (AP) - Chrysler will close at least 25 dealerships in the Carolinas as part of a bankruptcy motion likely to devastate cities and towns.
The company filed the motion with the U.S. Bankruptcy Court in New York on Thursday, citing low dealership sales. Plans to eliminate 789 of its 3,200 dealerships would close at least 14 stores in North Carolina and 11 in South Carolina.
The motion states just over 50 percent of its dealers account for about 90% of the company's U.S. sales. Dealers may appeal the proposal.
Chrysler has received $4 billion in federal loans and has been operating under bankruptcy protection since April 30. Its sales this year are down 46 percent compared with the first four months of last year. Chrysler reported a nearly $17 billion net loss for 2008.