April 30, 2009

Chrysler announces plans to temporarily halt vehicle production and is declaring bankruptcy.

Local dealers say they are worried that this could sway customers away from purchasing a Chrysler, but they're actually relieved to hear the news.

Brown Automotive Chrysler and Dodge says it's good news for them. The people there say it could have been a lot worse for dealers and the consumer. The Charlottesville dealership says President Obama originally told Chrysler it would have to dissolve, if it didn't make it.

Dealers say even though the automaker has had to file for bankruptcy, the company will survive, giving them enough time to partner with Italian automaker Fiat. They say that will bring more technology to Chrysler cars and strengthen the brand.

But local dealers and analysts say they realize filing for bankruptcy could cause potential buyers to think twice.

"Bankruptcy always tarnishes a brand name. That's the great shame of the events of today and what's happening to so many well known, well established companies," said Bob Bruner, Dean of UVa's Darden School of Business.

"It absolutely will be, nobody wants to hear the bankruptcy word because that's associated with some sort of failure. But this is going to be a bit of a different bankruptcy in that. They have the funding to get through the bankruptcy and come out the other end as a viable company," said Brown Automotive sales director Jay Malone.

Malone says their Chrysler dealership has seen its highest sales this month compared to the last nine months.

What do you think about the future of Chrysler? We welcome your comments.