Chrysler reaches amicable resolution with North Carolina.
Chrysler Group is pleased to reach an amicable resolution to our issues with the State of North Carolina. Such state dealer laws grant rejected dealers specific statutory rights previously afforded only to existing dealers, and are preempted in accordance with the Bankruptcy Court’s prior rulings.
The actions to reduce Chrysler’s dealer network were a necessary part of Chrysler Group’s viability and central to the interim financing and partnership with Fiat.
The process to determine which dealership contracts were rejected evaluated dealership performance and market factors using data driven criteria and was applied to every dealer. The only alternative would have been complete liquidation of the Company, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs, and defaults on billions of dollars in taxpayer loans.
There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment in restructuring its dealer network, but is acting in the greater public interest by protecting the dealer network that was created during bankruptcy.
Chrysler Group is confident the difficult decisions made during bankruptcy will continue to position the company for sustainable success and will enable the company to repay the U.S. Taxpayers in a timely manner.
The actions to reduce Chrysler’s dealer network were a necessary part of Chrysler Group’s viability and central to the interim financing and partnership with Fiat.
The process to determine which dealership contracts were rejected evaluated dealership performance and market factors using data driven criteria and was applied to every dealer. The only alternative would have been complete liquidation of the Company, which would have resulted in all 3,200 dealers closing, hundreds of thousands of lost jobs, and defaults on billions of dollars in taxpayer loans.
There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group not only employed sound business judgment in restructuring its dealer network, but is acting in the greater public interest by protecting the dealer network that was created during bankruptcy.
Chrysler Group is confident the difficult decisions made during bankruptcy will continue to position the company for sustainable success and will enable the company to repay the U.S. Taxpayers in a timely manner.
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