Chrysler Pulling Out Of Trotwood

By Bruce Kettelle

Trotwood’s Salem Chrysler Jeep was told Thursday they have been recommended for termination from their Chrysler franchise agreement. The Zappia Family owned dealer is one of 47 in the state on the company’s closure list submitted to the bankruptcy court.

Mary Kay Zappia said Thursday afternoon that calling it a closure list is actually deceiving. “The list is a recommendation to Bankruptcy Judge Gonzales to terminate franchise agreements.” The list contained the names of 789 dealers out of the nation’s 3,200 Chrysler, Dodge and Jeep outlets.

The Zappia’a own their 43-year-old dealership and have vowed to fight the recommendation even if it means testifying in court. Sensing they may be on the list they have already joined the Committee of Affected Dealers. A Cincinnati law firm is helping the committee fight the termination requests.

Zappia said they cannot be told to close but they may lose their ability to sell Chrysler products. The dealership also boasts a robust service department that will work on more than
just Chrysler products. “We will be open as usual,” said Zappia.

“The Zappias have been extremely good corporate citizens in Trotwood,” said Trotwood City Manager Mike Lucking. Over the years the dealership has made significant donations to the city’s fire and rescue department and other charity support. “We’ve been in contact with her and she is determined to fight this recommendation.”

The list was published on Thursday morning. With 53, Pennsylvania has the most dealerships on the list. Other states near the top of the list besides Ohio are Texas with 50, Illinois 44, Michigan 39, Florida 35, New Jersey and California with 30 each, 28 in New York, Missouri 26 and 24 in nearby Indiana.

Dealers will be allowed to argue against Chrysler’s action in the bankruptcy proceedings. Chrysler reasons the reduction will allow the remaining dealers to return to a higher level of profitability.

Last year about 1,000 dealerships closed nationally on their own, mostly due to economic pressures.

Next it will be General Motors turn. As many as 2,600 GM dealers across the country are expected to be phased out as that company tries to deal with their own financial challenges. GM has indicated the reductions will have the largest impact in urban and suburban districts. Nearby officials will be holding their breath in neighboring Brookville home to the nearest GM dealership, Boose Chevrolet.