As expected, the 789 rejected Chrysler, Dodge and Jeep dealerships are not going down without putting up some kind of fight.
Automotive News is reporting that the national dealer group has filed a motion in U.S. Bankruptcy Court asking that all legal protections (read: state franchise laws) the dealers would have outside of bankruptcy court be honored here.
A judge will hear the case on June 4, just 5 days before Chrysler announce it would end operations at the affected dealers. Notably, says AN, Chrysler would not buy back the remaining vehicle inventory and parts at the rejected dealerships, but would merely steer those owners toward surviving dealers that might wish to purchase it.
Automotive News (sub.req)
bankerdanny says:
09:41 AM, 05/18/09
Chrysler and GM are smart to pare the dealer ranks. But to terminate with 30-days notice and refuse to take back the inventory is just wrong. These aren't blenders on the lots. I am with the dealers on this one, close them, but take back the inventory and sell it to other dealers.
redliner says:
10:46 AM, 05/18/09
Hurray! This is long overdue, although i feel bad for the thousands of people who will lose their jobs.
brn says:
11:51 AM, 05/18/09
I wouldn't be surprised if this is a calculated move. They're claiming to not take the vehicles back to encourage the dealers to move them off the lot or trade them to another dealer. At the last minute (or a little later), they'll buy the back.
If they offered to buy the vehicles back right away, none of these dealers (understandably) would try and move the vehicles.
bankerdanny says:
12:19 PM, 05/18/09
That's an interesting thought Brn. I hope you're right.