Chrysler Vs. Their Own Dealers
Chrysler is in a battle, with some of their own dealerships – In this corner, from Detroit Rock City, Chrysler LLC CEO Robert Nardelli – his opponent, numbering 789 strong – the Closing Chrysler Dealerships! That’s right – it has been reported via various news outlets that around 300 Chrysler dealers,which have been ordered to shut down at one point or another this year, are fighting this move. They are taking on Chrysler LLC directly by filing objections to the shut downs at the U.S. Bankruptcy Court in Manhattan.
How effective can this move be? So far the outcome is unclear, personally we don’t see too many of these dealers taking on the big dog and winning. As the dealerships are ordered to stop selling cars on June 9th, the pissed off dealerships are using the argument that laying them off with only three weeks notice is unethical.
Again, this will not be an easy sell – according to the Wall St. Journal: “Bankruptcy laws give the courts wide latitude for tearing up existing contracts like dealer licenses. A group of Chrysler creditors also formed a committee to fight a plan to slash its secured debt, but almost all have now relented and the committee has been disbanded.”
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