Maui will lose its only Chrysler, Dodge, Jeep dealership under a plan submitted by Chrysler LLC to a bankruptcy court asking that 789 of its about 3,200 dealership agreements be rescinded.

Moreover, it may not be the only dealership locally to lose its tie with an automaker as General Motors Corp. looks to notify up to 1,200 U.S. dealers shortly that their franchises won't be renewed.

Chrysler yesterday submitted a list to court of dealerships it wanted to cut off that included Island Dodge in Kahului, but as of late yesterday the dealership had not heard anything from the financially strapped carmaker.

It learned of its fate by seeing it named on lists available on the Internet. Jim Wheeler, general sales manager, said Chrysler was supposed to notify dealerships through overnight letters, but because such deliveries take two days to reach Hawai'i it had not received anything as of late yesterday.

"We learned about who was on the list at the same time the public did," Roy Kitagawa, president of Kitagawa Motors Inc., said in a company statement.

"Obviously, those who were part of Chrysler's decision-making process did not realize or appreciate the fact that we are on an island, which is separate from the rest of the state."

That left Kitagawa and others at Island Dodge unable to answer questions about what would happen to car warranties, service and parts. There also are questions about what happens to its existing inventory and loans on the vehicles.

"For years, the Chrysler side of our business has not been profitable, but we kept the franchise for the sake of our Island Dodge employees and their families, and our loyal customers," Kitagawa said.

"Chrysler's apparent decision is a disappointment to us from that perspective."

Kitagawa Motors will remain in business should Chrysler prevail in court because it also operates Island Honda and Island Subaru from its location at 110 S. Hana Highway. It also has three used-car lots. Kitagawa Motors has been in business for 49 years.

Chrysler and General Motors have suffered in recent months because of a stunning decline in sales. On April 30, Chrysler filed for bankruptcy; General Motors has said it is likely to seek similar court protection.

General Motors is expected to tell dealers as early as today which ones will not have their franchises renewed.

Locally there's also been a historic decline in sales, with a forecast produced for the Hawaii Automobile Dealers Association predicting sales this year will fall 19.8 percent. At that level, they would be half of what was sold in 2005.

The affected Chrysler dealers are to stop operating on or about June 9. Chrysler said many of the dealers being cut had low sales and that the move was essential to its viability and sale to Fiat SpA.

The 25 percent of dealers it wants to drop account for 14 percent of sales, Steven Landry, Chrysler executive vice president, said in a statement he issued.

"Is there a more humane way we could do it? No," said Jim Press, Chrysler vice chairman, on a conference call with reporters.

"There is no way to say anything but that it is a sacrifice that is for the good of the total."

There is no appeal process for dealers that are cut and Chrysler is offering them no compensation, the company said.

Fiat, not Chrysler, will have the final say on which dealers are brought to a new company to be formed with the company's best assets and run by the Italian carmaker. Some cuts might be restored, people familiar with the situation said.

Bloomberg News Service contributed to this report.