Chrysler dealers object to closures

Chrysler’s national dealer council filed a motion with the bankruptcy court, objecting to Chrysler’s request to pull franchises from 789 dealerships on June 9. They argued that the dealers generate revenue while taking the risk on cars they purchase; pointed out that dealers own an average of $5 million in vehicle inventories, and around $2.5 million in facilities; and argued that fewer dealers would mean lower sales. The council asked the judge to provide dealerships with rights they would normally have, including protection of state laws, if Chrysler was not in bankruptcy.

There are reportedly over 44,000 vehicles in inventory at the targeted dealerships. Chrysler will not buy the vehicles back, but has offered to pair up closing dealerships with surviving ones.

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