( AOL Autos ) -- Chrysler and General Motors announced this week that they would shrink their dealer base in the U.S. Chrysler will close 789 dealers . General Motors announced the closing of 1,100 dealers . Chrysler will close 789 dealers , leaving them with approximately 2400 stores in the U.S. General Motors announced the closing of 1,100 dealers and hopes to be at a size of 3,600 dealers at the end of 2010 . While Chrysler dealers will be `` forced out '' by June 9 , GM is positioning for a smoother closing of its stores , with each shutting down when it runs out of inventory . Unlike Chrysler 's announcement , GM 's list of closing dealers will not be made public , leaving that decision to each dealer . What happens to my GM or Chrysler vehicle warranty ? Your warranty is valid through its term , regardless of where you bought your vehicle . In March , President Obama announced that the U.S. government would provide the backing for Chrysler and GM vehicle warranties under the `` Warrantee Commitment Program . '' Can I take my vehicle for service and warranty work to another ( surviving ) dealer ? Yes , but make sure it 's a certified dealer . If you 're going to take your Chrysler , Jeep or Dodge vehicle in for warranty work , you can do so at a closing dealership until June 9 . After that time , Chrysler will no longer pay those dealers for warranty work . GM vehicles will receive service and warranty work at closing dealers until they shut down . Will there be good deals on these vehicles ? The Chrysler dealerships to close will have about 44,000 units on hand , or roughly what Chrysler , Jeep and Dodge sell across the country every 2-3 weeks ( using April 's sales numbers as a guide ) . There will be deals , but be warned that if those 44,000 are n't sold before June 9 , Chrysler will work to redistribute them to other dealers . Whether the best deals will be had before or after June 9 is likely negligible ; if you 're interested in a Chrysler , Jeep or Dodge product , you will save a lot of money on a new purchase right now . One important factor to keep in mind is that approximately 10 % of those remaining units are 2008 vehicles . Be careful the car you 're looking at has n't been sitting on the lot inactive for too long ; cars actually do `` rot . '' GM 's dealer announcement is a different story , since the company is n't releasing the names of the closing dealers . Dealers who chose to disclose their shutdown may provide better deals . AOL Autos : Why do cars rot on the lot ? How many people and jobs are affected by closing dealers ? The impact on communities will be significant . Since dealers typically employ about 50 people and contract with a handful of suppliers ( consider the business that sells paper or office furniture to each dealer ) , there will be impact within the community . Some economists , however , believe that the impact will be less than expected , since dealers typically have a high turnover rate and technician jobs were in a short supply already . But , the related aspects of dealer closings are certain : think of the little league baseball teams and charities that receive funding from do-gooding dealers . Even real estate is affected ; car dealerships usually set the market for commercial real estate in smaller communities . When those go empty , the entire city feels the pain . AOL Autos : Pressure to buy American . Why were these dealers chosen ? Both Chrysler and GM have expressed interest to shrink their dealer base . Company officials cite various data points related to choosing these dealers , but the main one is performance . GM said that the average dealer of the 1,100 affected only sold 35 cars in all of 2008 . Chrysler cites similar numbers , with half their closing dealerships selling less than 100 . But , even after these reductions by Chrysler and GM , they still have more dealers than other manufacturers . Using April 2009 's sales data as a proxy , Toyota has approximately 95 dealers per 1 point of market share in the U.S. , while Chrysler has 256 and GM will have 172 ( at the end of 2010 ) . This means that , effectively , Toyota is able to sell more vehicles per dealership . AOL Autos : Fate of the GM brands . Can dealers do anything about this ? Typically , dealers would have protection under state franchise laws against such events . However , in Chrysler 's case , those franchise laws are not applicable since the company declared Chapter 11 bankruptcy . Chrysler dealers can ( and likely will ) protest the process by which they were chosen ( sales volume , number of brands in the store , the area in which the dealership operated ) . But after June 9 , the selected Chrysler , Jeep and Dodge dealers will have to take down their signs . GM dealers will likely organize their own group , but details of that are unclear at this time . AOL Autos : Are extended warranties worth it ? Even after cuts , do the big three still have too many U.S. dealers ? Some companies need fewer dealers to sell the same amount of cars : . Chrysler LLC Number of dealers : 2411 Market share : 9.4 Dealers per 1 pt . market share : 256 . Ford Motor Co . Number of dealers : 3723 Market share : 15.7 Dealers per 1 pt . market share : 237 . General Motors Number of dealers : 3600 Market share : 20.9 Dealers per 1 pt . market share : 172 AOL Autos : Six cars to save the big three . Honda Motor Co . Number of dealers : 1304 Market share : 12.4 Dealers per 1 pt . market share : 105 . Toyota Motor Corp . Number of dealers : 1470 Market share : 15.4 Dealers per 1 pt . market share : 95 . Market data shown reflective of April 2009 , courtesy of Autodata . Chrysler dealer total is effective June 9 ; GM dealer total is estimate for end of 2010 .
Chrysler and General Motors announce they will shrink dealer base in U.S. Chrysler dealers will be `` forced out '' by June 9 . Your warranty is valid through its term , no matter where you bought your car . If the dealership closes down or changes ownership, then it's not covered under any warranties that were purchased before July 1 of this year.