Post-Tribune staff and wire reports
Two Northwest Indiana dealerships, including one that has been selling Chrysler vehicles for more than 80 years, are among 789 slated for closure early next month by Chrysler LLC.
Isakson Motor Sales in Hobart and Southlake Dodge in Merrillville were included in a list of dealerships the corporation wants to close filed Thursday morning with the U.S. Bankruptcy Court in New York. In its filing, Chrysler said it has too many stores competing with each other and many of the dealers slated for closure have low sales. The closures would shed about a quarter of the automakers' 3,200 U.S. dealerships.
Chrysler Vice Chairman Jim Press called the cuts difficult but necessary. He said the list of dealers is final and there will be no appeal process.
But Rob Isakson, who is the fourth generation in his family to sell Chrysler vehicles in Hobart, said he will fight the car company's decision anyway.
"We're taking their decision to court. My family has been Chrysler dealers for 81 years and we're not giving up without a fight," Isakson said. "I'm very unhappy with this decision. We've always been loyal to Chrysler and my two sons want to stay in this business, making them the fifth generation to sell Chryslers."
He said he's already started circulating a petition among his customers and has joined a group of Chrysler dealers across the Midwest fighting impending closure.
Isakson said his sales have increased in the last two years, his current facility is only 10 years old and his dealership has always scored high in customer satisfaction. He said the area is growing in population and he is only two miles from an Interstate 94 interchange -- all positive attributes for a dealership. The only thing working against him is the fact that he does not sell Jeep products.
"We were supposed to sell Jeeps in 2001, but didn't get it because of Chrysler politics. That hurt us," said Isakson, who has 22 employees, some of whom have been with them for more than 20 years.
Michael Kors, owner of Southlake Dodge in Merrillville, did not return phone calls Thursday asking for comment.
Dealers were informed Thursday morning through United Parcel Service letters if they would remain or be eliminated. But Isakson said he learned of his fate through an article in a Detroit newspaper. He said his letter arrived an hour after the list was already circulated in the press.
Cary Bosak, an owner of Bosak Chrysler Jeep in Merrillville, said he received the good news that he would be retained with mixed feelings. "At the same time that I was feeling very happy and relieved for our employees, I feel very bad for those at Southlake Dodge, Isakson ... It's hard to feel jubilation when friends are going through tough times," Bosak said.
Bosak says many employees at dealerships slated for closure will be picked up by remaining stores, especially on the service end.
Hobart Clerk-Treasurer Deborah Longer said the city is affected every time a business closes, but this is especially difficult because Isakson has been a Hobart staple for 81 years.
"You're giving me news that is very sad for me. I hope they fight or make a decision to stay in business as some other type of dealership," she said.
Isakson vowed to remain in Hobart as a dealer, even if he doesn't win his fight to remain a Chrysler dealer.
"Isakson Motors will not disappear. We will remain as a different dealership or a used car dealership," he said.
Chrysler dealerships aren't the only ones scheduled to get bad news this week. General Motors Corp. says it is notifying 1,100 dealers it will not renew their franchise agreements when they expire at the end of September 2010.
Post-Tribune correspondent Karen Caffarini contributed.