Closed Chrysler Dealerships Suing to Delay Fiat Merger, Prolong Bankruptcy

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Closed Chrysler Dealerships Suing to Delay Fiat Merger, Prolong Bankruptcy

May 21st, 2009 by Ross Edwards

A group of Chrysler dealers that Chrysler plans to close on June 9th has banded together and asked the bankruptcy court to delay Chrysler’s sale to Fiat. The group, called the Committee of Chrysler Affected dealers, is made up of about 300 Chrysler dealers from 45 states. Chrysler is planning to terminate 789 dealership franchise agreements early next month as part of its plan to regain viability.

The Chrysler dealer group is asking the bankruptcy court for more time to argue its case, and possibly avoid termination, according to Edmunds Inside Line.

“Chrysler’s proposed asset sale and request for immediate termination of dealer franchises will destroy several hundred independent businesses, ruin the livelihoods of their owners, cause the loss of thousands of jobs and precipitate inevitable personal and business bankruptcies flowing from the closing of the affected dealers,” Stephen D. Lerner, an attorney at Squire Sanders and Dempsey said.

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They might kill Chrysler by doing this, but I have a real tough time drumming up sympathy for such a scummy company.