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Chrysler Dealerships Sue Government

Sixty four former Chrysler dealerships have sued the government over the closing of their dealerships, stating that it was against the law for the dealers not to receive compensation for the dealership going under. The dealers are maintaining that the closing of their dealerships was what was best for the economy as a whole, thus why should they have to deal with the financial situation that it has caused? They firmly believe that the government and the public should be handling the financial situation with them, together. 

The dealers are also maintaining that the government used up its authority under the Troubled Assist Relief Program to be able to close these dealerships, instead of going by the states law that is designed to protect dealerships. Thus far, the Treasury Department has declined to comment. However, those close to the situation say that the closing of the dealership was necessary in order to make sure that the Chrysler company stayed afloat during this financial period of uncertain. However, the government had no hand in which dealerships were closed, nor in the number of dealerships that were closed. 

Dealers are stating that they spent millions of dollars trying to get the Chrysler dealerships up to standards and sell more vehicles, only to have their dealership closed and lose everything, yet receive no compensation. All the dealers involved in the lawsuit are going for at least $130 million to cover the cost that they put into the dealership in order to sell more cars, as well as the compensation for having their dealership closed with little or no warning in advance. 

The big question is whether a judge will agree with the dealers or not? Though it is easy to see why the dealers are upset, and those that are closing dealerships now are getting some form of compensation, thus why these dealers feel that they deserve the money. However, it really seems like an issue that they should be taking up with Chrysler Corporate offices since the government just recommended closing the dealerships, not choosing which ones to close.