NY judge: Old Chrysler has little need for dealers

Source: Reuters

NEW YORK (Reuters) - Chrysler will have little need for the hundreds of dealers it wants to close if it completes its sale to Fiat as expected, the judge overseeing the automaker's bankruptcy said on Thursday.

Earlier this week, Judge Arthur Gonzalez approved the sale of most of Chrysler's assets to Italian automaker Fiat SpA. The 789 dealerships that are slated for closure will remain in bankruptcy with the "Old Chrysler," which also includes unwanted factories.

At the start of hearings in Manhattan's bankruptcy court on a motion to close the dealerships, Gonzalez said once the Fiat sale closes, he did not see how the bankrupt business would need a dealer network.

"Absent a car manufacturing business, the dealerships would not seem to serve any purpose for the debtor," Gonzalez said, but added there may be a case for the dealers to pursue damages.

Read more: http://www.reuters.com/article/topNews/idUSTRE5533DC20090604

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I guess the two dealers in my town who sell Chrysler products will have no choice but to file bankruptcy. One dealer also sells Saab, but I can't believe they can stay in business selling just them and used cars.

Saab may, sadly, be history in a few months.

might be time to buy soon