US judge approves Chrysler dealership cutsJune 10th, 2009 - 5:10 am ICT by IANS
New York, June 10 (Xinhua) A US judge Tuesday allowed automaker Chrysler LLC to terminate the franchises of its 789 dealers.
The order issued by Judge Arthur Gonzalez Tuesday afternoon ruled that the franchises can no longer act as authorised Chrysler, Dodge and Jeep dealers, effective immediately.
The bankruptcy court in New York approved the sale of Chrysler’s most assets to Italian car company Fiat Group Friday. But the ruling was met with objections from a group of Chrysler dealers and three Indiana pension and construction funds.
Dealers said that little would be gained by terminating their franchises. They also argued that any ruling by Gonzalez should be put on hold pending Supreme Court action on the Chrysler sale. US Supreme Court Justice Ruth Bader Ginsburg Monday decided to delay the Chrysler sale to Fiat.
Chrysler entered bankruptcy process April 30. Fiat can walk away from the sale if the deal cannot be closed by June 15.
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