ELYRIA – The Spitzer Auto Group does not plan to quietly let Chrysler cancel franchise agreements at seven of its dealerships.

Spitzer attorney Anthony Giardini said Wednesday that the company plans to fight the decision handed down by Chrysler, which cut nearly 800 dealerships nationwide as it reorganizes under bankruptcy protection and merges with Italian automaker Fiat.

“We have the right to go to the bankruptcy court and object,” Giardini said.

Spitzer, which was told to close a total of seven dealerships, including its dealership in Sheffield, by June 9, took the biggest hit of any company that sells Chryslers around the nation, Giardini said. AutoNation, the country`s largest dealership company, also lost seven Chrysler dealerships.

Even if Spitzer`s efforts to keep selling new Chryslers fail, Giardini said the company would still be able to sell used cars and operate service centers, but he hopes it doesn`t come to that.

“(Chrysler) has contracts, and it has to abide by its contracts,” he said.

Gary Adams, president of the Greater Cleveland Automobile Dealers` Association, said that Spitzer isn`t alone in challenging Chrysler`s decisions.

A larger group of dealers, including Nick Abraham, who is losing the right to sell the Chrysler and Jeep brands at his Abraham Auto Mall in Elyria, have banded together to fight Chrysler, Adams said.

While Adams said he isn`t certain that effort will be enough to stop Chrysler`s plans, it may delay them enough to allow dealers losing their franchise agreements to sell off their remaining inventory. The group, known as the Committee of Chrysler Affected Dealers, has serious concerns over the Fiat deal.

“Their goal is to object to the sale and slow down the process,” Adams said.

Even getting 60 extra days to sell their inventory could be a boon, he said.

Giardini said Spitzer may have one of its dealerships join those efforts as a show of solidarity, but the company means to fight its own battle.

“The group is too big to get into the details of everybody`s situation,” he said.

Chrysler isn`t alone in trying to rid itself of dealerships. General Motors also has told 1,100 dealers in the United States that they will lose their franchise agreements. No Lorain County dealerships will lose their franchises beyond the Pontiac brand, which is being discontinued.

U.S. Sen. Sherrod Brown, D-Avon, said Wednesday during a conference call that he would like to know more about why the two automakers, which have taken federal bailout money, made the decisions they did. Dealers have complained that they haven`t been given an explanation as to why they`re being targeted for closure.

“I think Chrysler and GM would not have chosen to do this if they thought it would mean fewer sales,” he said.

But Brown said he`s not sure the federal government can do anything to alter the decisions.
U.S. automakers have been struggling to shed dealers over the past few years, saying they have too many dealerships.

Ed Montgomery, who is serving as director of recovery for auto communities and workers under President Barack Obama, said there will be aid to help those affected by dealer closings find new work.

Contact Brad Dicken at 329-7147 or bdicken@chroniclet.com.

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