Taylor-Parker to fight Chrysler shutdown plan

SANDPOINT — After filing for federal bankruptcy protection late last month, Chrysler LLC announced Thursday it was eliminating nearly 800 of its American dealerships, including Sandpoint’s Taylor-Parker Motor Co.

The news will undoubtedly spell doom for hundreds of Chrysler dealerships around the country, but not for Taylor-Parker, according to company president Greg Taylor.

Taylor said his company, which is also a General Motors/Chevrolet dealership, is financially strong and will continue operations.

“Any rumors that Taylor-Parker Motor Company is closing are completely false. We have no intention of closing,” he said. “We’re as strong as we’ve ever been. Financially, we’re in fine shape and the attitude of our employees is good.”

The news does mean that Taylor-Parker will rely solely on sales of General Motors and Chevrolet products — along with pre-owned automobiles — which Taylor said historically make up nearly 90 percent of company sales.

While there have been rumblings of possible Chrysler cuts, Taylor said he found out that his company had been tagged for elimination only after reading the newspaper Thursday morning.

“We were shocked when we saw this morning via the New York Times and our names being listed the bankruptcy filings,” he said. “We had not been notified by Chrysler and weren’t until this afternoon when we received a letter from them.”

Taylor said there are several unanswered legal questions about the abrupt eliminations and the entire bankruptcy procedure, and he said a lawyer has already been hired help get financial relief for the affected dealerships.

“This bankruptcy procedure has trumped state franchise laws — state franchise laws were set up to protect the dealers and protect their investment,” he said. “Unfortunately, the way this bankruptcy was manipulated through the courts, it appears as though those state franchise laws are not going to be held up, although this is a legal argument that’s going to be presented in court very shortly.”

A number of Chrysler dealers met this week in Washington to discuss the issue with congressional officers and members of President Barack Obama’s autos task force, which is overseeing the industry, to try to get congressional help with the downsizing.

Taylor stressed that all Chrysler, Dodge and Jeep products on his lot are owned by Taylor-Parker, not by Chrysler. Those products — including special tools and parts — will likely be liquidated over the next several weeks, but Taylor said he is still in the dark about how the procedure will unfold.

“We do not have a clear understanding of what’s going to happen,” he said. “However, Chrysler has said they will assist, but it appears that it won’t be any financial assistance at this point. That’s where these legal actions come into play.”

With the loss of the Chrysler franchise, Taylor said his company will no longer be able to service vehicles currently under warranty, although it will continue to offer non-warranty service and repair.

Taylor said he has kept his 27 employees abreast of what is happening in the auto industry and has no plans for any layoffs.

As if the Chrysler eliminations were not trying enough, General Motors plans to announce its own round of dealer eliminations today.

Taylor said he has no idea what his fate with GM will be, but he did point out a difference between how the two auto manufacturers will handle the cuts.

“The affected dealers that GM is talking about are going to have a franchise until October of 2010, so GM is giving those dealers a period of 15-18 months to change their business plan,” he said.