CHRYSLER Dealers to Fight Closings

According to the Unhappy Franchisee post CHRYSLER: Dealers to Fight Back, the Chrysler National Dealer Council has said that Chrysler dealers will soon launch their legal opposition to the company’s plan to revoke 789 franchise agreements.

Chrysler is seeking the court’s permission to revoke 789 dealers’ franchises as part of its Chapter 11 restructuring. Chrysler is seeking to revoke dealer agreements on June 9, and to emerge within 6 weeks as a “new” Chrysler alliance with Italy’s Fiat.

According  CHRYSLER: Dealers to Fight Back, “Car dealers have long assumed that they are protected by the state franchise laws, many drawn up with the help of the dealers themselves… But Chrysler has asked the court to rule that the US bankruptcy code takes precedence over the state laws.”

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Photo credit:  Larry He’s So Fine License:  Creative Commons

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