Dealers sue Chrysler

Eleven dealerships are currently trying to sue Chrysler Group, LLC, which has asked judge Arthur Gonzalez to block the suit, according to the Detroit News. The dealers are attempting to regain their franchises, saying that their state’s motor vehicles statutes outweigh the bankruptcy code. A hearing is scheduled for August 27.

The dealers are primarily from [...]

Congress passes law requiring reinstatement of dealers

Spending bill H.R. 3170RH, passed by a narrow margin by Congress, included an amendment which read:
SEC. 745. (a) None of the funds made available in this or any other Act may be used to obtain a financial or ownership interest (or right to acquire such an interest) in an automobile manufacturer that deprives an automobile [...]

Real costs of “bad” Chrysler dealers

Peter Grady, VP-Network Development and Fleet, issued the following statement (abbreviated somewhat here):
… As Congress considers legislation aimed at reversing our decisions, I feel it’s important to set the record straight—not with opinion or rhetoric, but with straight facts. …
We chose the network that we felt would best represent the new Chrysler Group LLC in [...]

Dealers lose appeal to bankruptcy court

The 789 dealers about to lose their franchise have lost their appeal to the bankruptcy court, with Judge Gonzalez denying the appeal. There have been some questions about the motivation and wisdom of the process of choosing dealers to be dropped. See the integrated dealer closings page and a discussion of the issues.

Toyota picking up GM, Chrysler dealers?

Dealers that are having their franchises revoked are getting special attention from Toyota, according to an inside source. Toyota personnel are traveling the country and recruiting former Chrylser and soon-to-be-former GM dealerships, offering them the opportunity to switch franchises. They will not be reimbursed for the cars and parts they have, which are to be [...]

Watchdog panel raises questions about government stimulus program

The Congressional Oversight Panel, created to monitor the $700 billion federal bailout program, is raising some red flags over the way the program is operating.
The panel, headed by Harvard Professor Elizabeth Warren, is concerned the Term Asset Loan Facility (TALF) may pose a risk to taxpayers due to inadequate safeguards. The panel is also worried [...]