GM, Chrysler Owners: How Dealer Closings Will Affect You

By now you've heard that Chrysler is dumping hundreds of lower performing dealerships...as it tires to turn its fortunes around. The obvious impact: More people out of work, fewer places to buy a car.

GM is dropping 1,100 dealers nationwide, but is quietly informing them, and it will be a longer process.

But what if you currently own a GM or Chrysler: will your dealer still offer you service?

Dealers Try to Help Customers

Trudi Schwarz -- like almost 800 Chrysler dealers nationwide -- will soon no longer be able to sell new Dodge Chargers and Challengers soon.

Her dealership, Joe Kidd Dodge on Rt 125 in Amelia, is one of 7 Cincinnati area Chrysler dealers that will be losing its franchise.

But Schwarz is making a pledge to her customers and 35 employees that the dealership will still be here, even after the dodge sign is gone. She says "we will be here. And we will service automobiles. And we hope our customers will not go away."

Tim Reif is one of those longtime customers.

Tim told me "I really like these people. They've taken care of my mom. My mom has bought 3 cars the past 20 years. Its a real shame."

What about Repairs?

Many any dealerships, like Kidd, will remain open, if only to sell used cars and do repairs. But customers with warranty work may have to find another Chrysler or GM dealer.

Tim says "when it comes to warranty service, I don't know if they can do that or not."

• The good news: Other dealers will honor warranties, as if they had sold the car in the first place.
• The bad news: For many customers, a visit to the dealer will be further away and not as convenient.

But more importantly to Tim: he will lose a local dealer he's considered a friend for 30 years.

What Customers Should Do

My advice? Contact your dealer before you need a repair. Find out if they are staying open, and if so, if they will be able to perform warranty or recall work. Chances are, if you are out of warranty, you can continue to use them.

If you are still under warranty, you may want to visit some other local dealerships, to see if youre comfortable with them, and so you don't waste your money.

Im John Matarese.