Two decisions were handed down June 9, sealing the fate of Chrysler and the 789 dealers it terminated. The Supreme Court rejected an attempt by Indiana Pension Funds to block the sale of Chrysler to Fiat SpA, clearing the way for the sale.
In a separate proceeding, the Bankruptcy Court approved Chrysler’s rejection of 789 dealers. Judge Gonzalez’s order specified that the terminated franchises could no longer act as authorized Chrysler dealers, effective immediately.
NJ CAR, NADA and dealer associations across the country are pushing federal legislation to require Chrysler and GM to honor and comply with state franchise laws regardless of their bankruptcies. Hearings continue on Friday in the House of Representatives on the “forced closures” of dealerships. NJ CAR will continue to explore all possible remedies and protections for dealers. |
