Assuming Chrysler emerges from bankruptcy on Friday as a Fiat-controlled new company, the automaker says it will reopen the majority of its idled factories. The company halted production entirely last month during its bankruptcy proceedings and it also announced the eventual closure of a few of its factories.

The news was revealed yesterday during a conference call with reporters to discuss Chrysler’s sales – which weren’t quite as bad as exected, meaning dealership inventories are down to a more manageable 86 day supply.

“The majority of plants will come up last week of June,” said Steven Landry, executive vice president of North America sales, service and parts.

Landry said that the plants will wrap up 2009 production for a few weeks before being switched over to the 2010 models.

Doomed dealers clearing out inventory
Despite analysts’ predictions that the 789 dealerships Chrysler will close soon wouldn’t be blowing out inventory, those dealerships accounted for a hefty 20 percent of the automaker’s sales. In the first three months of the year, those dealers only accounted for 12 percent of sales.

“They definitely turned it on,” said Landry.

Those currently dealers hold about 26,000 of the 260,000 vehicles Chrysler dealers have in inventory in the United States. The majority of those – about 23,000 – will be making their way to other dealers to be redistributed over the next few days. The other 3,000 cars are still awaiting surviving Chrysler dealers to take them over. Landry didn’t specify what products are being snapped up and which ones are languishing.

The Jeep Wrangler, which has posted strong sales numbers all year, is apparently in short supply, Landry said. Dealers could be facing a shortage of Wranglers before the Toledo, Ohio, Jeep plant resumes production and ships vehicles to dealers.

Incentives to stay
Landry said that most of Chrysler’s May incentives – up to $6,000 on leftover 2008-models – will stick around for June. Some models will continue to offer 0 percent financing.

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