Judge lets Chrysler sever ties with 789 dealers

Source: Yahoo News

NEW YORK – A bankruptcy judge on Tuesday approved Chrysler's plan to terminate 789 of its dealer franchises, while the automaker's plan to partner with Italy's Fiat hinged on action by the Supreme Court and both automakers warned that the deal could fall apart if it's not completed soon.

U.S. Judge Arthur Gonzalez's order says the franchises, which represent about 25 percent of the company's dealer base, can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately. A written ruling explaining the decision was expected to be filed later.

The sale of Chrysler's assets to Fiat Group SpA had been expected to close more than a week ago, but Supreme Court Justice Ruth Bader Ginsburg's decision to delay the sale now threatens to derail Chrysler's restructuring plans.

In a brief filed with the Supreme Court Tuesday afternoon, Chrysler and Fiat warned that the deal will terminate if it does not close by June 15. While a new agreement could be negotiated, there's no guarantee that one will be reached or that Chrysler will be able to be jump-start its operations after the deadline, they said.

Read more: http://news.yahoo.com/s/ap/20090609/ap_on_bi_ge/us_chrysler_bankruptcy

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AP – A sign is posted at a Chrysler/Dodge dealership in Colma, Calif., that closed on Tuesday, June 9, 2009. …

GM is at least allowing dealers until late next year to close down. The Chrysler dealers should have been allowed to sell the vehicle they already have on their lots.

When you allow large corporations to dictate policy.

They won't deliver us the heads of the bankers, so they are giving us sacrificial auto dealers?

They're independent companies that buy wholesale, sell retail? Why not let them keep selling the damn cars if they want to, or let them out of their contracts if they want?

It probably costs something for Chrysler or GM to "support" their dealers, but couldn't those costs just be cut? Or is there a liability to have someone representing your company?

2 authorized Ferrari dealerships are within a closer radius of me than the nearest Chrysler dealer.

to me.

I would think that you need more outlets to sell your product. When there are fewer outlets, fewer people will be in a position to buy it.

The company should allow dealers to stay in business if they want to hold the inventory. The problem is the car companies own the inventory until it is sold.