Story County Chrysler, Jeep and Dodge fans may have to travel a bit farther to fulfill their auto needs after June 9.

Under a plan released by Chrysler on Thursday, the company will eliminate 789 of its 3,181 dealers, including all three Chrysler franchises in Story County.

Ron Willey, owner of Willey Auto Group, said he had no idea his dealerships were up for elimination. Willey has held Chrysler franchises in Ames and Nevada for more than 20 years.

Willey said “they had talked about cutting dealers” but he had been given no indication of which dealers would be cut until the final list was released.

“It came as a total surprise,” he said. “[Thursday] morning almost 800 dealers got a phone-call followed up by a letter.”

For dealerships, it’s a frustrating situation since they’ve invested time and money in the Chrysler franchise, Willey said.

“The dealers own their own vehicles, their own parts, their own special equipment,” he said. “The dealers have invested thousands of dollars in training.”

Story County Chrysler, Jeep and Dodge owners will now have to travel to Des Moines to purchase a new car or receive repair work paid for by Chrysler, such as warranty or factory recall repairs.

“They feel that people will drive any distance to purchase or service their products,” Willey said.

In normal situations, state franchise law forbids cutting dealers on short notice without substantial cause. In Chrysler’s case, the federal bankruptcy court trumps state law.

“There’s franchise laws to protect the dealer and the customer,” Willey said. “The only way they can get around it is by bankruptcy court.”

Willey said eliminated dealers can appeal the decision to the bankruptcy court through a formal process, but he thinks it is unlikely that an appeal would be successful.

Despite the loss of the Chrysler franchise, the Willey dealerships in Ames and Nevada aren’t going anywhere. With additional franchises in Ford, Lincoln, Mercury and Suzuki, along with a substantial inventory of used cars, Willey said he has a broad product base to sell beyond the Chrysler brand.

The dealership will continue to serve its customers in the area by performing work on Chrysler, Jeep and Dodge vehicles, with the exception of warranty and recall work.

A bigger problem for dealers is what to do with new vehicles. Since they’re fully owned by the independent dealerships, it is their responsibility to sell the cars.

The problem is complicated by the rebate system used in the auto industry. Under normal circumstances, dealers buy cars from the manufacturer at above-market prices, then receive a rebate check from the manufacturer to make up the difference after the sale.

Willey said paying rebate checks to eliminated dealers is a low priority on the bankrupt manufacturer’s list of credit obligations. Rebate or not, the dealers are stuck with what they’ve purchased.

“We own the cars. We need to figure out a way to get rid of them,” Willey said.