NORTHGLENN, Colo.—Northglenn Dodge owner David Fitzgerald was 11 when he started mowing the lawn at his father’s dealership on the same site where the younger Fitzgerald operates today.
His father went broke running the business after weathering times of fuel rationing, but Fitzgerald bought it back. He has been operating Northglenn Dodge since 1992, boasting a 13 percent increase in sales last year.
On Thursday, Chrysler LLC told him he was among at least a dozen Colorado dealerships the company plans to shed as it works through bankruptcy proceedings.
“I think they’re making a mistake,” Fitzgerald said.
He doesn’t know yet how many of his roughly 100 employees he might lose as he switches to selling solely used cars.
“This is devastating to me,” said Fitzgerald, 49, from a colleague’s office. He brought his hands to his lips and took a deep breath. “But I have to continue on. All these people are looking to me for leadership. I’ll turn into a puddle when I go home tonight when no one can see.”
Chrysler LLC has targeted 789 dealerships it wants to shed around the country by June 9. A federal bankruptcy court must approve the plan.
The decision could mean Chrysler, Dodge and Jeep owners may have to travel farther for repairs and maintenance, said Tim Jackson, president of Colorado Automobile Dealers Association.
Jackson said the move wouldn’t save Chrysler any expenses.
“This doesn’t seem logical, rational, reasonable or practical,” Jackson said. “All they’re going to do is reduce the number of customers they have. It won’t do anything to help the survival of Chrysler. In fact, it may be detrimental to the survival of Chrysler over the long term.”
Chrysler said its sales network has too many stores competing with each other. Executives said they were trying to save its best-performing dealers.
Cook Chevrolet Inc. in Craig received a phone call and letter Thursday that it was on the list to be dropped. Scott Cook, who owns the business with his father, said the dealership has about 18 Jeeps to sell or move to other dealerships.
The Jeep decision won’t affect staffing since Cook also sells Subarus and Chevrolets, but Cook is still waiting to hear GM’s plans.
Even before Thursday, Cook gave up sponsorships for the Steamboat Springs hot air balloon rodeo and a couple of golf tournaments. The dealership also turned down a request to sponsor a Little League team in Steamboat Springs for $750.
“All dealers have had to cut back on the charitable things they do. That’s sad for everybody,” Cook said. “When the industry is going through the upheaval it’s going through now, we felt we needed to donate that money to employees—keep them happy and keep them paid.”
In Northglenn, Fitzgerald has 169 cars and trucks on his lot, plus 11 vehicles in transit, which he hopes to sell in the coming weeks. Northglenn Dodge sold 649 new vehicles last year, with sales tax of 7.8 percent, Fitzgerald said. The dealership also sold 981 used vehicles.
Fitzgerald expects his monthly advertising spending to fall $30,000 for now.
Around the time he bought his dealership, he had the choice of selling Toyotas in Phoenix or selling Dodge, the American brand he grew up with.
He chose Dodge.
“Other than what happened today, I still don’t regret that decision,” he said.
