Chrysler is expected to fire about 800 of it's dealers nationwide Thursday.
General Motors is expected to make a similar move this week too.
"They want dealers to be more profitable" said Jim Edmund of Helfman River Oaks Chrysler Jeep on Kirby Drive in Houston.
When Chrysler comes out of bankruptcy there will be fewer places to buy a Dodge, Jeep, and of course a Chrysler. The company hopes by reducing the number of dealerships it will boost the profits of those dealerships that remain. "The dealers that stay in business will be profitable" said Edmund.
Helfman River Oaks Chrysler Jeep is confident that it will be part of the new Chrysler when the automaker emerges from bankruptcy.
"River Oaks doesn't have any problems. We've been in business for over 40 years. We meet all of the manufactures sales objectives" said Edmund.
If Chrysler dealerships in Houston are shut down sales people, mechanics and others will loose their jobs.
Economics Professor Steven Craig of the University of Houston thinks the layoffs won't have a long term impact on the Houston economy because people will still be buying the same number of cars. "Whatever income was lost by the directly effected people will be gained by the other people who are going to benefit indirectly" Craig said.
Craig feels those who loose their jobs will eventually be absorbed by the surviving dealerships, or other similar industries.
At river oaks Chrysler the sales manager agrees. "The good ones will stay in the car business" said Edmund.
General Motors is expected to make a similar move this week too.
"They want dealers to be more profitable" said Jim Edmund of Helfman River Oaks Chrysler Jeep on Kirby Drive in Houston.
When Chrysler comes out of bankruptcy there will be fewer places to buy a Dodge, Jeep, and of course a Chrysler. The company hopes by reducing the number of dealerships it will boost the profits of those dealerships that remain. "The dealers that stay in business will be profitable" said Edmund.
Helfman River Oaks Chrysler Jeep is confident that it will be part of the new Chrysler when the automaker emerges from bankruptcy.
"River Oaks doesn't have any problems. We've been in business for over 40 years. We meet all of the manufactures sales objectives" said Edmund.
If Chrysler dealerships in Houston are shut down sales people, mechanics and others will loose their jobs.
Economics Professor Steven Craig of the University of Houston thinks the layoffs won't have a long term impact on the Houston economy because people will still be buying the same number of cars. "Whatever income was lost by the directly effected people will be gained by the other people who are going to benefit indirectly" Craig said.
Craig feels those who loose their jobs will eventually be absorbed by the surviving dealerships, or other similar industries.
At river oaks Chrysler the sales manager agrees. "The good ones will stay in the car business" said Edmund.
