TRUCK enthusiasts will need to find a new place to scratch their automotive itch.
The Chrysler-Dodge-Jeep-Ram dealership in Oregon, Illinois has officially closed as of early September.
A Chrysler-Jeep-Dodge-Ram dealership in Illinois has shut its doors after a decade[/caption]
The closure comes after a merger with another location and staff were offered new opportunities within the dealership group[/caption]
The location is set to merge with its Sycamore and Sterling locations, per a Facebook post from the dealer group.
This closure marks an end to 10 years of faithfully serving the local Oregon, Illinois community.
The company has also welcomed customers to nearby dealerships, where it promises that “all service and warranty needs will continue to be supported,” per Shaw Local.
Despite the local dealership’s closure, all staff were offered new opportunities within the Kunes dealership group, with many choosing to stay with the company.
FINANCIAL FALLOUT
While customers and employees are both being taken care of by Kunes in this transitional period, the city of Oregon could be left hanging with a major bill to foot.
Oregon City Manager Darin DeHaan estimated that “$50,000 to $70,000 worth of sales tax was coming in from that business per year,” making it the city’s largest sales tax generator, per Shaw Local.
DeHaan hopes that the city can have another dealership take over the property, with the city lacking a dealership comparable in size to the former Kunes Auto Group location.
Kunes Auto Group operates across Illinois, Wisconsin, Iowa, and Minnesota with over 40 auto and RV dealerships across the four states.
DEALERSHIPS ON DEATH ROW
While the Kunes Auto Group location is the latest dealership location to close down, several other dealerships across the country have also been forced to cease operations.
In June, Bul Auto Sales in Albany, New York was closed alongside an exotic car dealership in Jacksonville, Florida, both owned by the same entity.
The Albany dealer had a sign on the door that said it was closed due to staffing issues.
In response, local customers had considered a class action lawsuit amidst local police investigations of whether any crime was committed as a part of the closure.
Even giants in the automotive industry are facing pressure to close their doors, as is the case with Tesla in its battle against the state of New York.
S.B. S6894, introduced in March, seeks to revoke Tesla’s ability to bypass traditional auto dealers by opening its own branded locations.
This could force the company to shut the doors on its five statewide dealerships, creating opportunity for rival electric vehicle makers like Rivian, Lucid, and Scout Motors to scoop up these licenses in the aftermath.
What to do if a dealership closes
If you recently bought a car or motorcycle from a dealership that suddently closed, you may feel anxious about how that affects you.
When you finance a new car or motorcycle or need warranty repairs done at an authorized dealership, a sudden closure can make some people think they’re out of options or worry their car will be repossessed.
If you’re in a situation that sounds like that, here are a few things you can do after receiving an official notice:
- Notify the bank hosting your loan of the closure to make them aware. If the financing is done through the dealership itself, it’s important to contact the dealership or your salesperson to ask how to keep up your payments. Many dealerships will send the lien (the title and registration that will only be released to the buyer after the debt is paid) to a financial institution to keep.
- If the dealership cannot be contacted through traditional means, most states allow drivers to apply for the title and registration through the DMV.
- If you leased a car from a dealership that went out of business, instructions should be sent as to which dealership to bring your vehicle to when the lease expires. If not, contact the dealership.
- A factory warranty through the manufacturer will be honored at any other authorized dealership. However, an extended warranty through the dealership may not be honored at other repair shops, so it’s important to seek that information from the dealership as soon as possible.
Source: Consumer Law Group
Nissan’s brand struggles in recent years have also bled into its brick-and-mortar locations, as was the case with a California dealership that cited issues faced by its parent company to explain its abrupt closure.
Several other Californian Nissan locations were also forced to close their doors for good, also as a result of several variables in Nissan Motor Co.’s current struggles.
THE BLAME GAME
While there are likely many factors causing this sudden spike in dealership closures nationwide, continuously rising costs of living are surely one of those at play.
President Donald Trump’s tariffs on imported vehicles are also playing a role, especially in Nissan’s case, where they account for a large share of its stateside sales.
Nissan was forced to close down another one of its dealerships in July, with the California location citing issues with its parent company, Nissan Motor Co., as the reason for its closure.
