A group of nearly 800 Chrysler dealers who were notified that their franchise agreements would be canceled by the company as part of a restructuring plan to reduce their overall number of dealerships is fighting back and asking the Obama auto taskforce to force Chrysler to keep them on. Automotive News reports:
Dealers who would lose franchises under Chrysler LLC’s plan to eliminate 25 percent of its U.S. retail network will ask the Obama auto task force to intervene on their behalf.
“We’re not a liability, we’re an asset,” said dealer Wade Walker of Montpelier, Vt., the leader of the Committee of Affected Chrysler Dealers.
Walker, owner of Walker Motors, said lawyers for the group will file information with the task force on Tuesday. The hope is that the task force, which is overseeing the bailout of Chrysler and General Motors, will force Chrysler to abandon its plan to ax franchises of 789 dealerships, he says.
This seems highly unlikely. Such cuts were almost certainly encouraged if not mandated by the taskforce during the negotiations.