Chrysler said it would terminate business with 789 of its 3,181 dealerships as of June 9, a move that could cost up to 40,000 jobs, according to the leading dealer trade group. Dealers in Pennsylvania, Texas, Ohio, Illinois and Michigan — where Chrysler is based — would be hit hardest.

On the surface, this may look disastrous to everyone, especially to those who are going to get directly impacted by this announcement. However, there could be a few bright spots in this announcement.

Downside:

1. The National Automobile Dealers Association says about 40,000 people work at the affected dealerships. Many will keep their jobs, but their dealerships will be left to sell only the other brands in their showrooms, or used cars.
2. Consumers who recently bought a Chrysler car and had also purchased extended warranty, paint protection options etc. will have a hard time in getting these services once the original dealer is not there. Although, I think that Chrysler will certainly take this into consideration, the service levels can never be the same without the original dealer.
3. Closed dealership will affect the community, laid-off workers will spend less, and towns will suffer from lost tax revenue

Upside:

1. Consumer will get excellent and never heard bargains from the dealerships which are closing as they would like to load off their inventories. This will be the best time to buy Chrysler vehicles.
2. This will give Chrysler an opportunity to re-evaluate its strategies, its long term plan and hopefully make it more efficient and profitable in long run. The company is also trying to reduce the number of single-brand dealerships to bring all three Chrysler brands — Jeep, Chrysler and Dodge — under one roof. The bankruptcy process will allow Chrysler a once-in-a-lifetime chance to achieve a right-sized dealer body,”
3. As better company will provide more stable jobs, this will help the current an future employees for a long time to come.

I would love to hear your thoughts on this subject.