Chrysler, dealers call off swanky reward meeting for top dealers

NEW YORK -- Chrysler has canceled its annual reward meeting for top-performing dealers for the first time in decades as it seeks to cut costs in the tough auto market.

The meeting was to include an all-expenses paid trip to the Hilton Los Cabos Beach & Golf Resort in San Jose del Cabo, Mexico, from March 15 through March 19, Chrysler said. The automaker offers such a trip to its top dealers every year.

The suspension, first reported by Dow Jones on Tuesday, was a mutual decision made between Chrysler and its dealers in the fall, Chrysler spokesman Stuart Schorr said.

"The decision was made between our leadership and our dealer council that, given the state of the market and the financial challenges the company faces, it made sense not to hold this year's reward meeting," Schorr said.

Dave Kelleher, who owns two Chrysler dealerships in the Philadelphia area, said he was invited to the past two reward meetings and would have gone to this one as well.

"You know what, we'll have other opportunities — hopefully in a much better time to enjoy ourselves," he said.

Kelleher said last year's meeting was held at the Ritz-Carlton in Naples, Fla., where he traveled with about 300 other dealers. Before that it was held at the same Hilton resort in Mexico where the 2009 meeting was to be held.

The meeting's cancellation comes as Chrysler tries to navigate the worst sales environment in more than 26 years. The automaker reported its auto sales in the U.s. plunged 47% year-over-year in November.

Earlier this month, the Bush White House approved $4 billion in short-term loans for the Auburn Hills, Mich., company to keep it afloat into next year. The White House approved an even larger sum for General Motors.

Kelleher said his dealerships have been hard hit by the sales slump, and he has been forced to cut employees' hours and lay some workers off to cope.

"It's a good year not to do this," he said.