Nereson's loses Jeep franchise
Chrysler's announcement that they are eliminating 789 dealerships across the country is affecting one car dealer in Detroit Lakes.
Nereson Chevrolet-Cadillac-Jeep will be losing its Jeep franchise at an undetermined date.
Chrysler is moving to cut 789 dealerships nationwide, about a quarter of its dealerships, as the company is reorganizing while under bankruptcy protection. Bankruptcy allows Chrysler to shed its dealers, while avoiding stringent state franchise laws that make it tough to cut dealerships during normal business conditions.
"We will not have any layoffs, and we will not change the way we do business," said Nereson co-owner Brad Richards.
He said that the Jeep component of the operation amounted to 5 percent of the business' bottom line.
That being said, Richards said that the loss of Jeep would hurt its loyal customers.
"We're not happy about losing our franchise," he said. "We have some great Jeep customers."
Nereson will continue to be a Jeep dealership for now.
"(We will be a Jeep dealership) Until they tell us we're not," Richards said.
Chrysler's announcement didn't affect its other franchise in town, Detroit Lakes Ford-Chrysler-Dodge.
On the heels of Chrysler's announcement, General Motors notified nearly 1,100 dealerships Friday that they intend to eliminate them.
GM's list wasn't made public and it's up to individual dealerships on whether they want to release that information to the public. As General Motors has not filed for bankruptcy as of yet, its list does not have to be made public.