GO
Loading...

Enter multiple symbols separated by commas

Chrysler Warns Weak Dealers May Shut Them Down: WSJ

Chrysler Group is warning some of its dealers that it may try to shut them down if they don't improve their sales within six months, the Wall Street Journal reported on its Web site on Tuesday.

Chrysler, which is being spun off by German parent DaimlerChrysler in a $7.4 billion deal with Cerberus Capital Management, has about 3,700 dealers, compared with General Motors' 6,900 and Ford Motor's 4,200, the paper said.

The paper reported that 40 to 50 dealers in the U.S. Great Lakes region who had been missing monthly sales goals received letters from Chrysler earlier this month.

The letters warned them that they must improve their performance within 180 days or Chrysler would begin the process to end their franchises, the paper said, citing two dealers who received the letters.

Similar letters are expected to go out to other dealers across the country in the next few weeks, the paper said, citing an unnamed source.

A company spokesman could not be reached immediately for comment.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

  • Thomas Lee

    This year's flat market is reminiscent of 1904, says Thomas Lee of Fundstrat Global Advisors in an interview with Amanda Drury.

U.S. Video

  • Twitter turns negative

    Twitter's CFO Anthony Noto is speaking on Twitter's earnings conference call, saying growing users and advertiser demand will take time. Bob Peck, SunTrust Robinson Humphrey, has the details.

  • Akamai crushed, traders say buy

    Akamai reported weak sales guidance for the third quarter, reports CNBC's Dominic Chu. "Fast Money" traders Steve Grasso and Pete Najarian see an opportunity.

  • Gilead higher after earnings beat

    Gilead is reporting a huge earnings beat of $3.15 per share on $8.24 billion in revenue, with CNBC's Meg Tirrell. The "Fast Money" traders discuss the market for hepatitis C drugs.