Despite its association with Ford--the only Detroit automaker not in, or flirting with, bankruptcy--parts supplier Visteon joined the bankruptcy crowd today. Visteon, which supplies Ford with an extensive array of supplies, was battered by Ford's 40 percent sales decline. Several Visteon subsidiaries filed for bankruptcy as well.
Nearly 50 auto parts and supply companies have filed for bankruptcy in 2008 and 2009.
In the wake of its bankruptcy filing, Chrysler has sent shutdown notices to 789 dealers around the United States. The outlets, which are typically well-protected from forced closures, can be closed since Chrysler has declared bankruptcy. The 789 stores are roughly 25 percent of Chrysler's total; the resulting network of around 2300 pales in comparison to the 6000-plus locations open at the company's peak.
General Motors, which is still debating a bankruptcy filing, has announced plans to close 2600 dealerships but details have not been disclosed.
