But the news isn't all bad. The surviving Eagle Auto Mall dealerships are optimistic about their future and remaining resilient in the down economy.
"Eagle Auto Mall is here to stay," said Mark Calisi, owner of the Riverhead auto dealer.
Mr. Calisi said some initial reports of Chrysler's plans to eliminate 789 of its 3,200 dealerships nationwide by June 9 gave the impression that Eagle Auto Mall on Route 58 was shutting down completely, which is not true.
"Chrysler Jeep constitutes about one-third of our business here," he said. Eagle Auto Mall also sells new cars from other brands, such as Volvo, Mazda and Kia, in its recently expanded showroom, which can hold 50 cars. It sells used cars as well.
Eagle Auto Mall also distributes General Motors accessories to all GM dealers in Nassau, Suffolk and the five boroughs of New York City, Mr. Calisi noted.
The Chrysler decision means that Eagle must send all unsold new Chrysler and Jeep vehicles back to the factory by June 9, and must remove the Chrysler Jeep sign from the front of the property.
Mr. Calisi said that one reason his dealership was cut is because the new Fiat ownership at Chrysler wants only dealerships that carry Chrysler and Jeep brands exclusively, similar to what Lexus and Mercedes dealers do. Fiat reportedly will have about a 20 percent interest in Chrysler.
Requests for comment from Thomas Dodge were not returned before deadline, but the Thomas Auto Group, which Thomas Dodge is part of, also sells Suzuki and Subaru cars.
Eagle Auto Mall will still be permitted to sell pre-owned Chryslers and Jeeps, according to Mr. Calisi, who said he plans to increase that part of his business. He also said he will examine the possibility of bringing other brands of new cars into his dealership.
Eagle Automall and Thomas Dodge aren't the only Chrysler and Dodge dealers in eastern and central Suffolk County.
It was tense in the days leading up to the announcement Thursday that Chrysler was shutting down dealers, and the owner of Riverhead Dodge said he breathed a sigh of relief after learning he would not be shuttered.
"Everybody was anxious, that's the best way to put it," said the dealership's owner, Tony Strollo. "We really didn't know anything before that. No one had discussed anything with us."
Peter Rhein, owner of Port Jeff Chrysler Jeep in Port Jefferson Station and a Mount Sinai resident, said his dealership also made the cut.
"We're doing very well," he said. "We're very busy, despite the economic slowdown."
He said business has been slower than it used to be, but "it's nothing alarming." Consumers are still confident in the product, he said, the dealership has a good service department and used car sales are doing well, he said. The dealership is continuing to advertise.
Mullen Motors in Southold, like Riverhead Dodge and Port Jeff Chrysler Jeep, was spared the ax by Chrysler.
"Everybody was walking around worried about this for a month," said owner Richard Mullen Jr. "Even some friends I have on the inside with Chrysler didn't know."
Both Mr. Strollo and Mr. Mullen said customers were calling or stopping in to congratulate them and their staffs on Thursday.
"I had six or seven customers come in just now to congratulate us," Mr. Mullen said.
"The number of customers who called to see what our fate was moving," Mr. Strollo said from Riverhead. "Just to see how many really cared that we were still in business was nice. But it's heartbreaking for those people who spent their lives building and nurturing a business to suddenly lose it."
Mr. Mullen said most of his 30 employees live locally and many of them have worked for the company for more than 20 years.
"It's like one big family here," he said. "We do things the way they used to do them in the '50s and '60s. If you've got a problem, we take care of it."
So will any of Eagle Auto Mall's more than 100 employees be laid off as a result of the Chrysler decision?
"We're studying that now," Mr. Calisi said. "There will be an impact, but we're still studying the severity of it."
He said his employees, most of whom are local, have a positive effect on the economy of the entire area by buying food and other items from local businesses.
"People don't realize the impact dealerships have," he said. "Every employee we have affects three other people."
tgannon@timesreview.com asnyder@northshoresun.com