US judge approves termination of Chrysler dealers

• Source: xinhua
• [08:50 June 10 2009]
• Comments

A US bankruptcy judge approved automaker Chrysler LLC's plan to terminate the franchises of its 789 dealers on Tuesday.

The order, issued by Judge Arthur Gonzalez late Tuesday afternoon, ruled that the franchises can no longer act as authorized 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 SpA on 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 US Judge Arthur Gonzalez should be put on hold pending Supreme Court action on the Chrysler sale. US Supreme Court Justice Ruth Bader Ginsburg decided on Monday to delay the Chrysler sale to Fiat.

Chrysler entered bankruptcy process on April 30. Fiat can walk away from the sale if the deal can not be closed by June 15. But the Italian automaker said it would not turn its back on Chrylser on Monday.