How will Chrysler's bankruptcy impact local dealerships?
By HARLOW SUMERFORD
6 News Reporter
LENOIR CITY (WATE) -- After taking billions of dollars from the government, big three automaker Chrysler will file for bankruptcy.
President Obama said Tuesday the company couldn't come to terms with its creditors and will file for Chapter 11.
But the bankruptcy is expected to be short, just a month or two. A deal is in place with Italian automaker Fiat, which will provide billions in necessary capital.
Filing for bankruptcy is never a good thing for a company, but it doesn't mean your local dealership will be closing.
At Tilley Lane Chrysler in Lenoir City, they expect business to continue as usual.
On the lot Thursday, four cars have sold but owner Ron Tilley spent plenty of time answering concerns about the big news.
"Most people deal with somebody that is in Chapter 11 all the time. You may not realize it, but if you fly in an airplane, there's a good chance you're flying an airline that is in bankruptcy, Chapter 11. So they did take Chapter 11 instead of 13, which is a good thing," Tilley says.
Chrysler will now be able to renegotiate contracts with suppliers and hopefully emerge a better company.
In the meantime, Tilley says Chrysler owners shouldn't notice a difference in service.
"You will never have to worry about your warranty, you won't have to worry about getting your car fixed or anything you have been promised as a purchaser of a Chrysler product. I hope I will be here, we have been a five star dealer every year we have been open," says Tilley.
But public perception could hurt sales and ultimately the economy will determine whether Tilley and other dealers sell enough cars to stay in business.