Sunday, December 18, 2011

Cordray pans Chrysler sale over dealer worries - Dayton Business Journal:

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Cordray and officials from nine other states filer a limited objection and statemengt in support of auto dealers this week in of New Attorneys general argued thesale shouldn’t alloq the bankrupt automaker to escape requirement of state laws, including those pertaininb to the termination of dealership agreements. “On less than 30 notice, Chrysler proposes to reject dozens of dealerf agreementsin Ohio,” Cordray said in a release. “Somre consideration should be given to those andChrysler shouldn’t be allowed to disregarde its obligations under Ohio law.” Chrysler announcedr in mid-May its plan to cut 789 dealerships from its .
Automotive News reported this week that a Bankruptcu Court hearing has been set for June 3on Chrysler’sd move to revoke the franchises. Cordray previouslyy has filed objections to the sale over the effectsethat Chrysler’s deal to emerge as a new company undee a partnership with Italian automaker Fiat could have on Ohio’s Lemon Law and its workers’ compensation system. Cordray said attorneyxs from Ohio and other states are negotiating withAuburn Mich.-based Chrysler on both issues.

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