Senator Durbin Asks Chrysler to Consider Community Impact During Restructuring Process

May 18, 2009 -- WASHINGTON, D.C. – Assistant Senate Majority Leader Dick Durbin (D-IL) today asked the CEO of Chrysler, Robert Nardelli, to consider the impact that dealerships have on local communities as the company moves forward with restructuring and reducing its dealership network.

Late last week, Chrysler notified a bankruptcy court that it plans to eliminate 789 of its dealerships nationwide as part of an effort to restructure its failing business.

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“Chrysler dealerships have made a significant contribution to their communities,” wrote Durbin. “I recognize the tremendous challenges facing Chrysler as it restructures and rebuilds the organization. I ask, though, that as you make these painful decisions, you factor in the impact on local communities.”

Durbin also noted the economic impact of closing 44 Chrysler dealerships in a state that has already been hit hard by the economic downturn. “The last few years have been challenging for cities and rural communities across Illinois. The unemployment rate in the state is 9.1 percent. The state lost 51,600 jobs in April. Closing Chrysler dealerships in Illinois will only contribute to this bleak climate.”

Text of the letter appears below:

May 18, 2009

Mr. Robert Nardelli
Chairman and CEO
Chrysler LLC
PO Box 21-8004
Auburn Hills, MI 48321-8004

Dear Mr. Nardelli:

As Chrysler moves forward with restructuring and a reduction in its dealership network, I urge you to consider the positive role these dealerships play in their communities. From employer to tax payer to civic leader, Chrysler dealerships have made a significant contribution to their communities.

Clearly, closing dealerships will translate into job loss and an economic hit to the region. The last few years have been challenging for cities and rural communities across Illinois. The unemployment rate in the state is 9.1 percent. The state lost 51,600 jobs in April. Closing Chrysler dealerships in Illinois will only contribute to this bleak climate.

I recognize the tremendous challenges facing Chrysler as it restructures and rebuilds the organization and commend you for working through these with the President and his team. I ask, though, that as you make these painful decisions, you factor in the impact on local communities. These dealers in many cases have sponsored Little League teams, provided that first job for high school students, and served as a staple of community organizations and activities.

Source: Senator Dick Durbin