Bankrupt Chrysler LLC is rushing to sell its assets as fast as possible because it wants to close a deal with Fiat SpA, possibly by Friday noon. Chrysler terminated the franchise agreements of 789 dealers and is now forced to liquidate that inventory.
Chrysler filed for bankruptcy on April 30 and all plants have been closed since May. Yet during that time Chrysler reported strong retail sales, much of it coming from dealers who are closing.
Customers who are buying are looking for fire sale prices. Discounts of $8,000 on 2008 models and $4,000on 2009 models are enticing customers even more. Plus there are added discounts for loyal Chrysler customers and those financing through credit unions, and 0% financing through, ironically, GMAC.
Meanwhile there has been a legal challenge from dealers who were terminated requesting that their status be reconsidered. This appeal will be heard on Wednesday.
Chrysler wants to close the deal with Fiat this week and resume production the last week of June.
This whole series of events is giving us an insight about what the GM bankruptcy might look like and the hurdles that the company may face. Overall, it seems that the Chrysler procedure has gone rather smoothly.
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Reader Comments (Page 1 of 1)
6-03-2009 @ 6:05PM
Dan Barnett said...
Didn't an Appealate Court throw a monkey wrench into the whole thing today? Something from the State of IN Retirement Fund?