The Galveston County Daily News

Chrysler’s announcement this week it would file for Chapter 11 bankruptcy wasn’t exactly bad news for some area dealers who are predicting a leaner, better automaker to emerge.

“The company is in a better position than it has been for quite some time,” said Patti Pike, general manager of Ron Carter Chrysler Jeep Dodge of Texas City, 2601 Palmer Highway.

Dealerships and federal officials are working to assure owners of Chrysler products and prospective buyers they won’t be hurt in the reorganization.

The nation’s third-largest automaker expects to emerge from the complete overhaul in about 30 days and will honor all warranties. Those warranties also are backed by the federal government, which agreed this week to give Chrysler up to $8 billion.

As it reorganizes, Chrysler also is forging a partnership with Italy’s Fiat Group.

Also, GMAC Financial Services, the financing arm of General Motors, in a four-year agreement, will provide financing for Chrysler customers. Customers with existing loans through Chrysler Financial shouldn’t see any changes, according to reports.

The Ron Carter dealership in Texas City is the only remaining seller of Chrysler automobiles in Galveston County. Several months ago, the island’s Sand Dollar Autoplex, 7802 Broadway, dropped its Chrysler Jeep Dodge franchise.

Ryan Orewiler, general manager of Sand Dollar Autoplex, would say only that the dealership wanted to put its focus elsewhere. The island autoplex continues to sell Chevrolet, Cadillac, Pontiac, GMC, Buick, Honda, Hyundai, Ford, Toyota and Scion brands.

Sand Dollar picked up the Chrysler, Dodge, Jeep and Mitsubishi brands in 2003 with the purchased Rick Perez Autonet, which had filed for Chapter 11 bankruptcy.

The tough economy and tightening credit has made life hard for both automakers and dealers, Orewiler said.

“There are a lot of pressures on the manufacturers,” Orewiler said. “They need us to do more and we need to do more in order to be able to do all the things we do. We just need the support of everybody around.”

Sales of new cars and trucks in the Houston area is down 40 percent, said Walter Wainwright, president of the Houston Automobile Dealers Association.

“It’s unprecedented,” Wainwright said.

Chrysler’s reorganization will include thinning its ranks of its dealerships, which are important to local economies, Wainwright said.

The Houston area is home to about 20 Chrysler Jeep Dodge dealerships, Wainwright said.

Car dealerships have invested millions in land, buildings and signs, Wainwright said. Dealerships aren’t costing Chrysler money, Wainwright said.

Manufacturers should let consumers choose which dealerships should stay open, Wainwright said.

“The marketplace should decide that,” he said.

The closure of weaker franchises might be better for the overall dealership body, Pike said.

“The process is going to produce a healthier and more viable company,” Pike said.

The Texas City dealership is holding its own, Pike said.

“Our business is a little ahead of last year,” she said.

The Associated Press contributed to this report.