Peter Kitzmiller, president of the Maryland Automobile Dealers Association, has issued the following statement in response to today’s decision by Chrysler to file for Chapter 11 bankruptcy:
“Bankruptcy is not the preferred option, but we have every expectation that Chrysler and its dealers will emerge stronger and more competitive than ever. We’re pleased to hear of the announced merger with Fiat, which should help speed up Chrysler’s restructure.
"It’s important to point out that Chrysler will continue to honor all warranties and that Chrysler dealers will work with all parties concerned and, most importantly, will make sure that their customers are taken care of.
"Bankruptcy, however, must not be used to drastically reduce dealer numbers. Dealers generate more than 90 percent of manufacturer revenue and are not a cost to the automaker. A rapid reduction in dealer numbers would not only do absolutely nothing to improve Chrysler’s viability in the short term, but it would actually work against Chrysler’s stated objective to increase revenue and cut costs.
"Chrysler’s bankruptcy is especially disappointing. Like so many others, we were hopeful that all of the stakeholders would be able to reach agreement, and Chrysler’s restructuring could move forward out of court.
"However, Maryland consumers can be sure that Maryland Chrysler dealers will be there to take care of all their sales and service needs.”
About the Maryland Automobile Dealers Association
Maryland Automobile Dealers Association (MADA) is a statewide association of new car and truck dealers managed by a Board of Directors, which consists of members representing districts throughout the State. MADA was founded in 1910 as a non-profit trade association for the purpose of: "facilitating the exchange of ideas among its members; to encourage sound business policies; to foster constructive motor vehicle legislation; to discourage destructive motor vehicle legislation, and to promote confidence, respect and good fellowship among all who are directly or indirectly engaged in the motor vehicle industry." For more information visit MADA online at www.mdauto.org.
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