In Michigan
4:44 pm
Thu June 4, 2009

Chrysler dealers question franchise terminations

New York – New York (AP) - Chrysler dealers expecting to lose their franchises took the stand today in the automaker's bankruptcy protection case. Just under 20 dealers were sworn in, but only about 14 testified, and no Chrysler officials took the stand.

Many dealers question why they were chosen for termination when their sales and service records are good. Arguments on a motion to terminate franchises are scheduled for Tuesday.

Lansing's Story Chrysler is one of about 300 dealers across the country resisting termination.

It was unclear when U.S. Judge Arthur Gonzalez will rule on Chrysler's motion to cancel the dealerships' franchise agreements, or how this will effect Chrysler's plans to sever ties with them effective Tuesday.

Chrysler claims it needs to reduce its dealer base by about 25% to emerge from Chapter 11 bankruptcy protection as a stronger company.