Thursday, May 14, 2009

Chrysler


Above is a map from Zero Hedgewhich shows a dot on the map for every Chrysler dealership which was eliminated today as a result of the Chrysler bankruptcy. Keep in mind that there will likely be more Chrysler dealers eliminated- this represents about one-third of all Chrysler dealerships. GM is expected to do the same, except GM has twice as many dealerships as Chrysler.
Think about how this makes it much more difficult for the economy to recover from the current crisis. Auto dealers are often the largest source of sales tax revenue for small communities. They are also large commercial real estate tenants. This is only the beginning.