Ledger DC Journal - News, Politics & Crime

The legal fights continue. Chrysler released a list of about 800 dealerships that will be closing last week and the Chrysler Dealerships will be closed as a result of the bankruptcy. Delivering another blow to the battered auto industry, General Motors Corp. has told roughly 1,100 car dealers they will be dropped by late next year as part of a plan to bring the number of GM dealers to around 3,600 by the end of 2010.

The legal fights continue for Chrysler

Money CNN reports, "Chrysler had a total of 3,181 authorized dealers in operation at the time of its April 30 bankruptcy court filing, according to court filings. Just over half of that number accounted for more than 90% of Chrysler sales, according to the filing."


New legal fights have been announced. According to a fight from the Detroit Free Press, Michael Bernstein, an attorney with Arnold & Porter who represents the Chrysler National Dealer Council, said the dealers may offer a number of objections to the plan in U.S. bankruptcy court, and that the case will enter some uncharted legal territory.

See the full list here. Chrysler told the targeted dealers it would set up a voluntary program to shift their vehicle and parts inventory to dealers who will remain in business. Dealers have until May 26 to object, and the court will hear those arguments starting June 3.