Closed Chrysler Dealerships Seek Compensation

khalid almasoud / Foter / Creative Commons Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0)

The federal bailouts of Chrysler and General Motors involved the closedown of many dealerships, which meant that many franchises had to go out of business forcefully. Now 148 Chrysler dealers are seeking compensation from the federal government for their losses.

The dealers’ point is that if the federal government had not pushed Chrysler to trim its sales centers, their businesses wouldn’t have been closed. They claim the forced closedowns were unconstitutional, as there was no financial compensation for the losses.

The US Court of Appeals for the Federal Circuit seems to be giving them a chance to present their arguments. If the dealers win the case, this would mean that the GM dealers who went through the same procedure can also appeal.

Read the full article at Autoblog.

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