NEW YORK — A bankruptcy judge on Tuesday approved Chrysler’s plan to terminate 789 of its dealer franchises.
Judge Arthur Gonzalez’s order says the franchises, which represent about 25 percent of the company’s dealer base, can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately. A written ruling explaining the decision was expected to be filed later.
More than 25 attorneys representing hundreds of dealers from across the country, including 14 in Colorado, argued in court that little would be gained by terminating the franchises, while Chrysler maintained that the move is a necessary part of its plan to cut costs and quickly emerge from Chapter 11.
Many of the dealers were trying to sell the last cars on their lots and preparing to shut their doors for good at the end of the day, while others planned to sell used cars or other brands after severing ties with Chrysler.
