The federal judge in Chrysler LLC's Chapter 11 case could decide on May 27 whether the automaker can pull its choice assets - its best-performing factories and dealerships - out of bankruptcy and sell them to a newly-formed incarnation of itself, called Chrysler Group.
But not everyone is happy about it. Chrysler, as part of its April 30 bankruptcy filing, wants to leave behind its multi-billion dollar debt and the underperforming dealers and plants it no longer afford. The strongest opposition comes from the auto dealers who resent being left behind.
Chrysler has already begun the process of shedding its unwanted assets. On May 14, the automaker said it was discontinuing contracts with 789, or about 25%, of its dealerships around the country. This puts enormous financial pressure on hundreds of small businesses and is expected to drive some of them out of business.
Homer Cutrubus, a Chrysler dealer since 1969, explained in court documents that the automaker "stepped up pressure" in February for him to consolidate his Layton, Utah dealership. After initially refusing to consolidate because it "did not make sense," Cutrubus wrote that the company "not only assured me of a continuing relationship with Chrysler but implied I was their 'guy' going forward."
The dealer said he moved his two Chrysler dealerships under one roof as requested, incurring $100,000 in expenses, but that didn't prevent him from landing on Chrysler's rejection list.
"In excess of 100 jobs are currently at risk," wrote Cutrubus. "Especially in light of the assurances made to me by Chrysler ... forcing Cutrubus and its [employees] to suffer these losses would be unconscionable."
Source: Money.Cnn.com
3 comments:
this total BS, thats soo wrong what they doing to people
It sucks..but Chrysler is like someone hanging on to someone while their sinking..its horrible!!
They're completely out for themselves. And obviously will lie to attempt to save themselves..someone will obviously suffer!!
same shit different day
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