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Jim Press attacked several “dealer myths” in front of Congress, defending Chrysler’s actions: Despite completing a painful restructuring, the New Chrysler Group will retain 86% of Chrysler dealers by volume, and 75% by location.I can empathize with the dealers who were not brought forward into the new company, and can understand their disappointment. This has been the [...]
Dozens of blogs have reported that President Barack Obama forced Chrysler to remove franchises from 789 dealerships for political reasons. On June 2, Jim Press testified that not renewing franchises for these dealers was necessary for corporate profitability. The 25% of dealers being dropped accounted for 14% of Chrysler’s overall sales; but sales are not [...]
Judge Arthur Gonzalez has delayed a hearing on Chrysler’s request to terminate 789 of its dealers until Thursday, to give dealers more preparation time; the Senate Commerce Committee is questioning Jim Press and Fritz Henderson about Chrysler and GM’s dealer-dropping plans today. While Chrysler plans to terminate 789 dealers’ franchise agreements, GM is planning to drop [...]
Republican Kay Bailey Hutchison, the senior Senator from Texas, has ended her opposition to federal funding for Chrysler because of the way it handled 789 dealer terminations. Hutchison had proposed an amendment that would have blocked the automaker’s lifeline unless it gave dealers 60 days’ notice of the revocation of their franchise. Chrysler dealers were [...]