MILWAUKEE (AP) – Chrysler LLC wants to eliminate 18 Wisconsin dealerships as part of a plan to cut 789 nationwide, a move that dealers say unfairly punishes many viable businesses.

In a motion filed Thursday with the U.S. Bankruptcy Court in New York, the company said many of the dealers’ sales are too low, in part because too many stores are competing with each other. It plans to close them by June 9.

Five of the targeted dealerships are in the Milwaukee area and three are in Madison. The other 10 are spread throughout Wisconsin.

Employees who answered phones at a number of dealerships Thursday said owners and managers weren’t available for comment. Most were huddled in hastily called meetings, the workers said.

Chris Snyder, the general counsel for the Wisconsin Automobile & Truck Dealers Association in Madison, said many of the dealers on the list are viable companies that are being forced out of business unfairly.

“When other people go out of business, it’s because they’re losing money,” he said. “These dealers aren’t going out of business voluntarily or because the market isn’t letting them go on. They’re just being told, ‘You’re no longer part of the team.'”

Chrysler Vice Chairman Jim Press said Thursday the list of dealers was final and there would be no appeals. But Snyder said he was told otherwise by a dealer who spoke with Chrysler.

“We’ve been told there are some specific situations here in Wisconsin where Chrysler wants a couple of dealers to get together, to work together, to have one facility that sells all the Chrysler brands under one roof,” he said.

His organization plans to meet with all the dealers on the list to discuss their legal and financial options, Snyder said.

Communities where the dealerships are located also are likely to be hurt Chrysler’s decision. The closures could mean a loss of jobs, taxes and, often, sponsors for community programs.

Bart Wolf, the general sales manager at Wolf’s Motor Car Co. in Plymouth, estimated he donated an average of $10,000 per year for local high school and middle school events, supporting band trips and athletic activities.

“The way things are going now, that could be cut down to under $2,000,” he said. “It’s hard to say no to anyone, but this could make things tough.”

Wolf sells a range of used cars along with new Chrysler and Jeep vehicles. He said his new car sales have been down, like those across the country, but his business was still strong enough to survive. He said he would fight to get off Chrysler’s list but would persevere even if the decision stood.

“I imagine we’ll ramp up our used-car business and our (automotive) services,” Wolf said. “It’s not going to be an easy road to go down, but we’ll just reinvent ourselves.”

Chrysler spokeswoman Kathy Graham would not comment other than to say the company will notify dealers before speaking publicly. A hearing on Chrysler’s motion is scheduled for June 3 in U.S. Bankruptcy Court in New York.

Along with the dealers in Milwaukee, Madison and Plymouth, the closure list includes businesses in Eau Claire, Ellsworth, Frederic, Kaukauna, Lomira, New London, Oshkosh, St. Croix Falls and St. Nazianz.

Gov. Jim Doyle was “very disappointed about the widespread, negative effects that Chrysler’s bankruptcy is having on Wisconsin,” said his spokeswoman, Carla Vigue.

Chrysler announced last week that it would close its engine plant in Kenosha by the end of 2010, eliminating 800 jobs. Vigue said Doyle was fighting at the “highest levels” to save those jobs, but she did not say what exactly he was doing.

The state Department of Workforce Development has not received any notices from dealers that jobs will be lost, department spokesman Dick Jones said.

That’s not surprising, since Chrysler just notified the dealers Thursday.

Under state law, companies with 50 or more employees must notify the state 60 days ahead of a closing affecting more than 25 workers. Companies with at least 25 workers must notify the state if there is a mass layoff affecting more than 25 percent of the employer’s workforce.

Messages left with the state Department of Commerce were not immediately returned Thursday.