NEW YORK — A parade of Chrysler dealers scheduled to lose their franchises took the stand Thursday in the automaker’s bankruptcy protection case, one choking back tears, as they touted their sales and service records and questioned how they were chosen for termination.
Just under 20 dealers were sworn in at the beginning of the day, but only about 14 testified, and no Chrysler officials took the stand. Arguments on the motion are scheduled for Tuesday.
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.
James Tarbox broke down while testifying about learning that the franchises for his pair of dealerships in Rhode Island and Massachusetts were included on Chrysler’s list of the 789 it plans to terminate.
"I thought there must be a mistake,” he said choking back tears.
Auburn Hills, Mich.-based Chrysler claims that it needs to reduce its dealer base by about 25 percent to a leaner network of about 2,400 dealers in order to emerge from Chapter 11 bankruptcy protection.
But the dealers argue that they don’t cost the automaker anything. They say that if Gonzalez approves Chrysler’s motion, hundreds of dealerships will be shuttered.
A group representing about 300 dealers have filed an objection. They also earlier opposed Chrysler’s sale to Fiat, saying it was tied to the plan
Arguments before the U.S. Court of Appeals for the Second Circuit are scheduled for today.
by the associated press
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