Chrysler to drop 789 dealers!

Dow Jones Newswire reports the following:

DETROIT - A group of auto dealers poised to be shut down by Chrysler LLC are gearing up to challenge the move in court, though it's unclear how much chance of success they have. About 300 affected dealers plan to file a motion in the U.S. Bankruptcy Court in Manhattan objecting to the company's dealer cuts and the company's plan to sell most of its operations to Italy's Fiat SpA, according to a lawyer representing the group. "I think the court will be flooded with objections," said Stephen D. Lerner, a partner at Squire, Sanders & Dempsey LLP, the firm hired to the group, which is calling itself the Committee of Chrysler Affected Dealers. The group, which has members from about 45 states, was started with the help of the National Automobile Dealers Association. On Thursday, Chrysler notified 789 of its 3,200 dealers that it plans to drop them from its retail network as part of its restructuring. The affected dealers are supposed to stop selling new Chrysler vehicles on or about June 9. The effort to close or consolidate its dealerships has the backing of the Obama administration's auto task force.
The committee is scheduled to meet with the auto task force Tuesday morning to discuss the matter, Lerner said. The forced closure of dealerships, he added, could violate state and federal laws. "You can't terminate them literally on three weeks' notice," Lerner said. "It's not that simple, and it's never been tested. "The dealers may be in for an uphill fight, however. Bankruptcy laws give the courts wide latitude for tearing up contracts such as dealer licenses. A group of Chrysler creditors also formed a committee to fight a plan to slash its secured debt, but almost all have now relented and the committee has been disbanded.

How will this help Chrysler? Fewer dealers to sell their products. It is not like Chrysler is actually paying the dealership payroll and will be reducing expenses.

The Greater Depression

Over the years we have all heard about the 'Great' Depression. Horror stories abound. We revere in the words of those that 'grew up in the Great Depression' as having weathered the storm and that they have insight into hard times.

We are now experiencing troubles far worse than the Great Depression. We also now have instantaneous access to World wide news regarding the financial struggles of all people of all nations.

Therefore......

I now officially christen this the GREATER DEPRESSION.

I pray that we will ALL weather this storm and come out with our own stories of how we successfully got through it.

Tom