Battered economy forces dealerships to shut down

The weakening economy has claimed two suburban car dealerships, which have announced plans to close.

Extreme Ford in Crystal Lake will close Nov. 14; Champion Dodge Chrysler Jeep in Barrington locked its doors suddenly Tuesday.

"It's too tough to sell cars right now. People are watching every penny. They're scared," said Chirs Myers, owner of Extreme Ford.

Handwritten paper signs reading "out of business" were taped to locked doors of Champion Dodge where the showroom was filled with new cars. Deflated red, white and blue balloons hang from the ceiling from what was the last weekend of sales at the dealer.

"Due to economic conditions, Champion has decided to close our doors," said co-owner Dave Nazha, who has owned the business with his brother John for five years. After meeting with attorneys and Chrysler representatives Wednesday morning, he declined further comment.

Customer David Hollein was upset with the news the Barrington dealership at 505 W. Northwest Hwy. closed.

"I don't think it will ever come back. Now these people can't get jobs," the Barrington Hills car collector said.

The closure came suddenly.

Barrington Area Chamber of Commerce President Janet Meyer said the news came as a shock to both the chamber membership and the entire community.

"They're one of our top three auto dealerships in the village and contribute substantially to our sales tax base," Meyer said. "Any hole in that will have an effect on the community. All four of our dealerships, including MotorWerks, probably felt they had a strong and loyal customer base they felt would see them through these hard times."

Automakers are facing troubling times.

"I think everybody in this industry is struggling," said Chrysler spokeswoman Curtrise Garner. She would not say how many of its 3,372 dealers are closing and also refused to confirm if the closing of the Barrington facility is connected to companywide financial problems.

Chrysler Corp. announced plans during the past week to jettison nearly 7,000 jobs. The struggling automaker reported it lost $660 million in its last quarter.

Extreme Ford owner Myers said he has watched customers dwindle over the past twelve months.

"The traffic flow in here has been half of what it was last year at this time," he said. His father, Carl, who has been in the business for 39 years, still serving as president, is concerned. "He says he's never seen it this bad," said Myers, who also owns Extreme Jeep in McHenry, which will remain open.

He explained that six Ford dealers in the area have agreed to buy out Extreme Ford, 5213 W. Northwest Hwy. The other dealers will purchase his new car inventory while he will liquidate the used cars.

High gasoline prices leading to dropping SUV sales also severely hurt his dealership, he said.

"The economic conditions out there are tough. There's just no business out there," Myers said.