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Project Economy: Pittsburgh Dealers Merge To Escape Chrysler's Closure Plan

Company Had Asked Court To Eliminate Many Local Dealerships

POSTED: 6:08 pm EDT June 25, 2009
UPDATED: 6:17 pm EDT June 25, 2009

Two Pittsburgh-area dealerships that were originally targeted for closure by Chrysler are still open for business and have learned that they won't be shutting down.

The owners of Krebs Dodge in Richland Township and Krebs Chrysler-Jeep in Shaler told Call 4 Action reporter Aaron Saykin that they fought tooth-and-nail when Chrysler revealed its closing list last month.

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For weeks, the dealers pleaded their case. Eventually, they made the previously-bankrupt automaker a joint offer that it couldn't refuse.

"It was a great day. It got a lot of weight off everybody's shoulder," Krebs Chrysler-Jeep owner Jim Krebs said Thursday.

The two dealerships are located on Route 8 and owned by brothers -- and now, they're partners.

"It's a sad day for me that they're taking the marquee down -- or the brands down -- but we're moving them to Gibsonia, about six and a half miles north, and it's a good day for that," Krebs said.

By merging into one big dealership, the Krebs brothers convinced Chrysler to change its mind.

Jim Krebs' place will now sell and service used cars, while Chris' Krebs' shop will offer new Chrysler-made models -- and all 58 combined employees will keep their jobs.

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"We're all pretty much drained," said Bob Manning, a 25-year employee. "We're happy because of the outcome, but we were pretty much drained throughout the process."

The municipalities where the two dealerships are located stood to lose tens of thousands of dollars in tax revenue before the new agreement.

"The stabilization of families and jobs, and how that keeps the rest of the community able to prosper -- that's even more important than the revenue," said Richland Township Manager Dean Bastianini.

This is the first example that Call 4 Action could find of Chrysler reversing its decision to close a dealer, although that was not confirmed by the automaker.

"I think we'll be fine. We each keep in our own little fiefdom, so to speak," Jim Krebs said.

The Krebses hope this development will encourage other car dealers who are on Chrysler's chopping block.

President Barack Obama's Auto Task Force backed Chrysler as it crafted the restructuring plan, which the U.S. Treasury Department said will avoid liquidation and allow the company to keep 75 percent of its 3,200 dealers.

The president's task force was not involved in the specific design of Chrysler's plan and did not help decide which dealers would be cut, according to the Treasury Department.



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