Terminated Chrysler franchise agreements end today, leaving owners frustrated

Dennis Smith feels betrayed by Chrysler.

After 2 1/2 years in operation, his Lucas-Smith Automotive dealership in Potosi, Mo., closed its doors Friday, nearly a month after learning Chrysler would terminate its agreement with his dealership by today. It was one of 789 dealerships the Auburn Hills, Mich.-based auto manufacturer intends to close as part of an agreement in bankruptcy court.

"I feel like we were thrown under the bus," Smith said. "What happened doesn't make you feel good.

"It's like they don't want you anymore," he said. "They told us not to even bother appealing because it was a done deal."

Smith has transferred 140 vehicles to his Dodge dealership in Festus, Mo., Lucas-Smith Auto Sales Inc. He plans to offer incentives to sell the cars at his St. Louis-area dealership, which he says he thinks has a bright future.

Auffenberg Chrysler Dodge Jeep in Cape Girardeau also sells the Kia brand. (Fred Lynch)

Much like Smith, auto dealership owners throughout the country have offered deep discounts to sell their remaining supply of Chrysler vehicles by today's deadline. Because it says it has too many dealerships competing with one another, the company decided to cut 25 percent of its 3,189 dealers. Dealers were notified of their fate May 14.

Unlike Lucas-Smith Automotive, the other two area dealerships closing today intend to continue operating because they sell other brands. Auffenberg Chrysler Dodge Jeep in Cape Girardeau sells Kia vehicles, while Guetterman Motors in Cairo, Ill., is a Ford, Lincoln and Mercury dealer.

But despite the closure, Jack Guetterman said his dealership faces a strong future. Since the mid-May announcement, Guetterman Motors has sold two of its Chryslers and intends to offer incentives to sell its remaining five Chryslers.

"Since we're also a Ford-Lincoln-Mercury dealer we haven't been affected as much as other dealerships that sell just Chrysler products," Guetterman said. "Our other brand of cars are of good quality and are headed by good management," he said. "Right now is a buyers' market. This is a great time to buy that car you've been wanting."

John Morlan, owner of Morlan Dodge in Sikeston, Mo., said his dealership has seen an increase in its May sales. He expects that trend to continue.

"Chrysler will institute more incentives for people to buy cars," Morlan said. "But after more dealerships sell out of their supply of Chrysler vehicles for good, they'll come to us and other nearby dealerships for warranty work.

"I have a large shop, which allows me to handle that increase," he said. "Sales will come after that. If you take care of the customers' service needs, then they'll be more likely to buy a vehicle from you in the future."

Phone messages seeking comment from Auffenberg general manager Darren Garner were not returned.

Morlan believes once Chrysler reorganizes, it will come out of bankruptcy protection as a stronger company.

"They're trying their best to consolidate and make things profitable," Morlan said. "You hate for people to lose jobs throughout this whole process but we'll be a stronger Chrysler in the end."

However, Smith said he thinks the auto industry is in trouble.

"It's kind of grim," he said. "We've given away almost every manufacturing industry we have in the country, with Ford and General Motors left. It once was a danger that this could happen but now it's a reality."

Now, more than ever, Smith believes consumers should buy American-made products.

"Every time we buy foreign stuff we shoot ourselves in the foot," Smith said. "It's terrible.

"The only way we'll be able to turn this situation around is if people start buying America-made stuff," he said. "Try buying American-made clothing, cameras or televisions. You can't do it anymore."

bblackwell@semissourian.com

388-3628

Pertinent addresses:

2210 Sycamore Street, Cairo, IL

611 South Kingshighway, Cape Girardeau, MO

1110 South Main Street, Sikeston, MO

1600 Parkway West, Festus, MO