By Chris Serio Martin and Amelia Jeffirs, Truth Staff
cmartin@etruth; ajeffirs@etruth.com
ELKHART -- Chrysler LLC's decision to drop a local dealership will not cause any local job losses or affect business at all, said dealer Donna Lochmandy of Heart City Automotive, 711 N. Nappanee St.
The local dealer was one of almost 800 businesses notified today that they may lose their franchise status. Chrysler is keeping about 3,200 dealerships.
Losing that status "wasn't surprising," Lochmandy said. "I expected it."
The loss of the brand "won't change my business," she said. The dealer's Toyota, used car and service department business remains strong.
While Lochmandy does not expect her business to be affected, dealers across the country certainly will feel the blow. Most dealers must finance the cars they show on their lots and may be forced to sell their inventories at a reduced cost. Some dealers have carried the Chrysler brands, including Dodge and Jeep, for decades.
As for the dozen Chrysler vehicles Lochmandy has on the lot, "The inventory is mine," she said. "I'll be selling that until it's gone."
Once Chrysler emerges from bankruptcy, "we won't be able to do warranty work," she added, but assured customers they can get warranty work at remaining Chrysler dealers. In other cases, her service department can get the parts needed to repair these cars.
Her brother, Craig Lochmandy of Lochmandy Motors, nearby at 920 N. Nappanee St., sells the Dodge and Jeep brands.
Chrysler also plans to drop two other area dealerships, Sorg South in Warsaw and Gurley Leep Dodge in Mishawaka.
And that move surprised Don Reese, Gurley Leep chief operating officer .
Over the last few years, Gurley Leep completed Chrysler's plan, Project Genesis, to merge Chrysler, Jeep and Dodge -- a step that Reese might have expected Chrysler to consider as a reason to retain Gurley Leep.
"The criteria hasn't been shared," Reese said. "Any rationale or explanation has not been provided."
The cut dealerships can appeal the cut, Reese said, and nearly all the dumped Chrysler dealers are forming a committee to appeal collectively.
But much remains uncertain, he said, because most of the final decisions must be approved by a judge in bankruptcy court with numerous deadlines for filings and appeals.
And Chrysler has not provided any details on the phase-out process, Reese said, but Gurley Leep Chrysler-Jeep-Dodge will cease operations June 9. Gurley Leep will do warranty work on Chrysler vehicles up to that date. On its Web site, Gurley Leep lists 20 auto lines as being part of its family.
Gurley Leep Automotive Management Group intends to retain all of its employees at the current location, which will run as an independent dealership, Reese said.
According to a statement issued by Gurley Leep Chrysler-Jeep-Dodge Thursday, the long-term plan is to use the current dealership location on Douglas Road "for the selling and servicing of other brands of new motor vehicles which appear to be more viable than the Chrysler, Jeep, Dodge brands of motor vehicles in this very difficult and challenging market that currently exists in the automotive industry."