[Guest post by DRJ]
Chrysler bankruptcy Judge Arthur Gonzalez is conducting a hearing today to decide whether Chrysler should be able to terminate 789 of its dealerships. Judge Gonzalez began the hearing by saying that Chrysler has a good case for termination but, nevertheless, he thinks it’s “still important to have this hearing.”
I’m sure that is comforting to the owner of Quality Jeep Chrysler, Inc., of Albuquerque, New Mexico, whose attorney is appearing today to object to the termination of his franchise. Here’s an excerpt from his Opening Statement:
“14. As just one of many examples, Quality Jeep Chrysler, in Albuquerque, New Mexico, was designated for rejection. The Dodge dealer down the block was designated for assumption. That was an exceedingly strange decision. The assumed Dodge dealer: i) is insolvent, ii) has been closed for over three months, iii) was publicly accused by the New Mexico Attorney General of conducting an “automotive Ponzi scheme,” and iv) had a contempt order entered against it for fraud and deceptive trade practices. Yet Chrysler seeks to assume that Dodge dealer’s franchise agreement. There is something rotten in the state of Denmark.”
The terminated dealers aren’t just complaining, they also offer solutions:
“15. As set forth above, there is a way for the Court to take a hard look at Chrysler’s business judgment without unnecessarily delaying the closing of the Sale Transaction. All the American government, the UAW and Fiat have to do is cause New Chrysler to accept for assignment, those dealer agreements that this Court determines, in an expedited process, were improperly designated for rejection by Chrysler in the first instance. There should be no
objection to that.”
There are other stories of terminated dealerships at the first link. In light of Judge Gonzalez’s statement before the hearing began, I have an idea what will happen to them and Quality Jeep Chrysler, Inc.