Rocco Massarelli is down but not out.
"I'm too stubborn to quit and I'm too stupid to go away," said the owner of Richard Chrysler-Jeep-Dodge in the western Chicago suburb of St Charles. "I'm going to keep selling cars and fight this to the end."
Massarelli's dealership is one of 789, out of a total of 3,181 Chrysler dealerships, with which the bankrupt automaker has said it plans to eliminate franchise agreements as of June 9.
The franchise eliminations are part of plans by Chrysler LLC [CBS.UL], the No. 3 U.S. automaker, which has been operating in bankruptcy since April 30, to sell its most valuable assets to a new company owned by the U.S. and Canadian governments, Chrysler's union and Italian car maker Fiat SpA (FIA.MI).
Bankruptcy Judge Arthur Gonzalez could rule as early as Wednesday on whether Chrysler can go ahead with those plans, with fierce opposition coming from dealers on the elimination list.
Massarelli said he was shocked Chrysler was ditching his franchise, a business his father founded 30 years ago.
"We don't fit the guidelines for closure," Massarelli said. "We're profitable, we've never missed a payment and we've done everything Chrysler has ever asked us to help them out."
The plan to shut off Richard Chrysler-Jeep-Dodge came May 14 despite a recent pickup in sales following a dismal 2008 fourth quarter when the credit crunch cut off potential buyers. The dealership sold 60 cars in April, down from pre-recession monthly highs of 150 cars, but inching back up.
Chrysler's sales fell 48 percent in April from a year earlier as the worst decline in U.S. auto sales in decades continued.
"The irony is we could do with more inventory right now because we're actually selling cars," said Marni McClennan on the sales floor between seeing customers. "We've had so many people coming in over the past few days it's hard to keep up."
Massarelli is stuck waiting to find out what will happen to his inventory -- Chrysler has said it will not repurchase cars from dealers -- and facing bankruptcy after June 9.
CUSTOMERS APLENTY
A steady stream of customers filed through Massarelli's showroom on Monday, which was Memorial Day in the United States -- the start of the busy summer driving months and the car-buying season.
The aroma of car wax and new leather mixed with the odor of engine oil and grease from the car service department -- a peculiar combination of smells common to U.S. dealerships.
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