Maday Motors will be part of new Chrysler
By Kevin Sweeney Journal EditorNEW ULM - Paul Maday got the good news Thursday. Maday Motors in New Ulm will be a part of the new Chrysler Corporation.
A letter from Chrysler to Maday Motors announced, "We are pleased to inform you on May 14th, Chrysler designated your Sales and Service Agreement(s) to be assumed and assigned to a new company that is purchasing the primary operating assets of Chrysler. You can remain our dealer as we move forward with establishing a new company."
Other dealerships in the area were not so lucky. On the list of dealerships to be closed are Scott-Preusse, Inc. in Redwood Falls and Factor Motors in LeCenter.
Chrysler submitted a list of 789 dealers nationwide, including 19 in Minnesota, that it would like to close to a New York bankruptcy court. Final approval will come from the court. A June 3 hearing has been set to consider Chrysler's motion.
Maday said he didn't think the dealership he and his brother Dennis own would be on Chrysler's cut list, "but you never know. We knew we were doing things right. Our sales our good and our profit and loss statements show we are making money. We have an up-to-date facility, not new, but recently renovated.
"I do feel sorry for the other guys," said Maday. "I know some of them. There's one near Rochester (Boe Motors in West Concord) that's a mom-and-pop place, which they run with their son and daughter."
Minnesota dealers would have preferred to "let it evolve," said Maday. "let the strong survive. But Chapter 11 left Chrysler open to have at it."
Chrysler informed its dealers that it would continue "'business as usual' with respect to all warranty and incentive payments that are due you," said the letter from Chrysler. "This will allow your dealership to remain focused on maximizing business opportunities and satisfying customers throughout this process."
