Minn. Chrysler dealers wonder who's on chopping block

Seventy-five Chrysler dealerships operate in Minnesota, where the company has about 10 percent of the new car market. That's less than half of General Motor's share of 22 percent, and slightly behind Ford's 11 percent.

Clancy Dokmo is president of Dokmo Ford Chrysler in Northfield. He was hoping Chrysler would avoid bankruptcy, and now he's wondering where it will take the automaker.

"Like everybody I'm kind of on needles and pins," Dokmo said.

One the one hand, Dokmo said he has lined up personal attorneys in case the bankruptcy proceedings challenge his business. But on the other hand, he said he's mostly optimistic about Chrysler's future. He expects the bankruptcy to be brief. Officials have suggested it could last just 60 days and Dokmo welcomes Chrysler's plans to merge with the Italian automaker Fiat.

"They've got great products, I've researched them in Europe," he said. "They own Alfa Romeo. They own Ferrari! So there's a lot of really wonderful, cool products they have."

Dokmo said Fiat has a lot of know-how building fuel-efficient engines that will help Chrysler.

But he said the market in Minnesota may have to warm up to smaller, more fuel-efficient vehicles. His hottest selling Chrysler product is a minivan. "Do our customers prefer a large car or truck? No doubt about it," Dokmo said. "But they're going to have to match their automobiles and vehicles to a changing climate as far as the price of energy."

"Like everybody I'm kind of on needles and pins."

Dealers like Dokmo, who sell other brands in addition to Chrysler, may have a better chance of surviving, should Chrysler cut them out as a dealer.

But right now the fate of dealers is unclear -- as are potential job losses. About 30,000 Minnesotans work in the state's "Motor Vehicle and Parts" sector, which includes car dealers. Their ranks have shrunk by about 3,000 people, or 9 percent, over the two years ending last month. High gas prices lashed the auto industry last year, and then the collapse of the banking industry dealt another blow, hampering access to credit for potential customers.

Chrysler isn't saying when dealers in Minnesota or elsewhere will learn of planned closings.

"There isn't a set number, and I really don't have timing for you," said Rick Deneau, a spokesman for Chrysler.

Deneau said there may indeed be streamlining of dealers, brands and products in the course of Chrysler's restructuring, but no specifics are available. Meantime, he said Chrysler is taking steps to improve the availability of credit to customers. The carmaker has a new arrangement to provide car loans through GMAC, the financing arm partly owned by General Motors.

"We expect this to be a benefit, with their bank status and access to federal funds," Deneau said. "We think there could be access to additional funds."

And, Deneau notes, customers should remember that even under a Chrysler bankruptcy, their warranties are safe and backed by the federal government.

Clancy Dokmo, the Chrysler dealer in Northfield, said that's an issue on the mind of customers.

"I just answered an email from a regular customer, and he said, 'where's my warranty on this deal,'" Dokmo said. "I told him it's backed by the government and this dealership like it has been for 25 years, so keep the faith."

Dokmo believes loyal Chrysler customers won't shy away from the automaker in bankruptcy. But loyal or not, customers may avoid car purchases for a while longer with job losses still at high levels.

Gallery

Fullscreen SlidePrevious Slide

1 of 1

Next Slide