Judge OKs Chrysler plan to terminate franchises
New York – A bankruptcy judge says Chrysler can go ahead with its plan to terminate the franchises of 789 of its dealers.
U.S. Judge Arthur Gonzalez issued the order late Tuesday afternoon. It says the franchises can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately.
Chrysler LLC says it needs to cut its dealer ranks by about 25 percent as part of its plans to cut costs and quickly emerge from Chapter 11 protection.
But the dealers insist that their existence doesn't result in any substantial costs for the automaker.