With Chrysler beginning bankruptcy proceedings and GM’s financial problems continuing to loom over the auto industry, local auto dealers across the country are awaiting a fate that is seemingly out of their hands.
Chrysler is scheduled to release a list of dealers it will admit in to the new company later this week. GM is planning to notify dealers as to which brands they plan to continue – including Buick, Cadillac and Chevrolet – this week as well.
As a result, dealers are facing closure though many dealers are banding together to fight back and the legal battle could delay Chrysler’s government-imposed bankruptcy by at least a month.
These dealers have aligned themselves with the National Automotive Dealers Association to meet with Congress and members of President Obama’s auto task force to see what can be done to put a stop to the impending dealer consolidation.
This could have a tremendous impact if you are running a fleet of vehicles purchased from a dealer that is put out of business, because under federal bankruptcy laws, money owed by Chrysler and potentially GM for warranty work or rebates could just disappear.
This story is likely to drag out in court for weeks if not months. For more information check out the full article entitled Auto Dealers Fight Against Closures here
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