Judge Arthur Gonzalez approved Chrysler’s bid to cut a quarter of its U.S. dealerships and overruled requests to delay the order until the U.S. Supreme Court rules on the sale of the Auburn Hills automaker to Fiat.
“No dealer wants to be rejected. We understand that,” Chrysler lawyer Kevyn Orr told the judge. Orr said that the bankruptcy law did give dealerships special protections.
Judge Gonzalez said that the dealers will be able to file damage claims within a certain time frame that is yet to be determined. About 98 percent of the vehicles at rejected dealers have been moved to stores that will become a part of Chrysler Group LLC, which will be owned by Fiat.
Yesterday, The U.S. Supreme Court delayed Chrysler’s sale to Fiat pending further review.
– By: Omar Rana