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WDAY: The News Leader

Published May 14, 2009, 09:56 PM

Chrysler bankruptcy hits home

Fargo, ND (WDAY TV) - A domino effect, that's how the Chrysler bankruptcy will drastically change dealerships here. Three dealers in the area are losing some vehicle lines, but that's also impacting other car stores. WDAY 6 Reporter Travis Skonseng joins us live with tonight's top story. Low sales are leading Chrysler to close nearly eight hundred dealerships nationwide. The Lunde store in Fargo is one of those losing a staple line, the jeep.

By: Travis Skonseng, WDAY

Fargo, ND (WDAY TV) - A domino effect, that's how the Chrysler bankruptcy will drastically change dealerships here. Three dealers in the area are losing some vehicle lines, but that's also impacting other car stores.

WDAY 6 Reporter Travis Skonseng joins us live with tonight's top story. Low sales are leading Chrysler to close nearly eight hundred dealerships nationwide. The Lunde store in Fargo is one of those losing a staple line, the jeep.

“I’m not okay with it but nothing we can do.”

Owner Andy Boen is just finding out come June 9th, his dealership is getting rid of the Jeep. A line sold at Lunde for 20 years.

“The reason our dealership is affected wasn't anything because of performance.”

Boen says he knew this was a possibility since Chrysler announced bankruptcy. He's already talking with manufacturers.

“We’ll just replace that inventory with another manufacturer.”

The move is years in the making. Chrysler has wanted to get all its franchises under one roof so not as many stores compete. That could happen at Corwin. It's considering taking in Lunde's Jeep line and inventory.

“Some of these dealers shut down, more than likely, we'll still own their product.”

Lindgren says the closures are positive for Corwin. The dealership is looking at its options, but nothing is in stone yet. Workers didn't think Corwin would shut down any lines after a record sales month.

“Being we're one of the largest Chrysler Dodge franchise dealers in this part of the country that was not a concern of ours.”

Boen says the cut likely won't affect business. The only change is customers buying Jeeps elsewhere. He says he'll roll with the punches.

“It’s a business always changing and it'll change going forward.”

There are 13 Jeeps Lunde needs to sell which could mean deals for customers in the coming weeks. Lunde can appeal the decision. It doesn't expect any layoffs as of now. The two others dealers affected, Lloyd's in Jamestown and Nereson in Detroit Lakes.

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