Milford Chrysler survives, fights on

MILFORD — When he went to sleep last Wednesday night, Bill Rosado had no idea if he would wake up to news that his Chrysler dealerships, one of which is the lone car dealership in Milford, would survive a massive cut by the ailing auto company. Luckily, they were not part of the 789 of Chrysler’s 3,181 dealers that met the ax. But with nationwide sales down 46% in the first four months of 2009 compared to the previous year, the dealer still faces an uphill battle against consumer confidence. To this day, Rosado said, it is unclear what exactly was used as a gauge to determine who lives and who survives, adding that communication has been very poor. He speculated it might have something to do with dealerships that only had one Chrysler brand under its roof. The Milford dealership also sells Jeep and Dodge. The Wall Street Journal reported that according to court filings, only 50% of Chrysler dealerships accounted for 90% of its sales. Yet Rosado said that this reasoning “is very confusing because [dealerships] are not really a cost to Chrysler.” The Milford dealership was acquired in 1992 and has 26 employees. “We’re a family business and glad to be one of the survivors,” Rosado said. Without Chrysler, Rosado said it is doubtful his business could survive on what would be its remaining Suzuki sales. Although the business now actually stands to benefit from area dealerships being cut because of less competition and more servicing opportunities, little activity is apparent at the Milford dealership of late. The brand is weak, and consumers are uncertain. “People are very nervous of the brand… they view the downsizing as alarming,” Rosado said. The Milford dealership is not looking to bring in other brands. “Credit is tight for floor planning, so we’re in preservation mode right now.” Chrysler filed for bankruptcy on Apr. 30 and has since begun a restructuring process. The cuts were part of a nationwide consolidation effort, said to decrease competition in markets with many dealers and lead to higher profits. The US government lent the nation’s third-largest car manufacturer $4 billion prior to the filing and indicated it would potentially lend some $6 billion more in the future.