Thursday, June 30, 2011

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

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Attorney General Richard Cordrat and officials from nine other states filed a limited objection and statement in supportf of auto dealers this week in ofNew York. Attorneysa general argued the sale shouldn’gt allow the automaker to escapee requirements ofstate laws, including those pertaininf to the termination of dealership agreements. “On less than 30 notice, Chrysler proposes to reject dozens of dealer agreementssin Ohio,” Cordray said in a “Some consideration should be given to thosse dealers, and Chrysler shouldn’t be allowex to disregard its obligations under Ohio Chrysler’s move to cut 789 dealerships from its networj in and around Centra Ohio, including Spitzer Dodge of Columbuss and Byers Dublin Dodge.
Automotive News reportef this week that a Bankruptcy Court hearingy has been set for June 3on Chrysler’s move to revokes the franchises. Cordray previously has filed objection to the sale over the effectsthat Chrysler’z deal to emerge as a new company under a partnershi with Italian automaker Fiat could have on Ohio’sx Lemon Law and its workers’ compensationb system. Cordray said attorneys from Ohio and othedr states are negotiating withAuburn Mich.-based Chrysler on both issues.

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