Quote:
Originally Posted by flstsphil
October 3 2019. This morning. Len says they are deciding whether to appeal or not. His letter does not sound optimistic. Judge said we did not meet burden of proving that (a) Chrysler did not act voluntarily and was coerced into both filing for bankruptcy and rejecting plaintiffs' franchise agreements and (b) their franchise agreements would have had value in a "but for world" without Government assistance.
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What world does that judge live in?? (a) Both GM and Chrysler were told by the Auto Task Force they needed to close 30% of their dealerships after they had "benchmarked" every aspect of the way the companies were run against Toyota. The Auto Task Force was in charge of restructuring and overseeing the operation of both Chrysler and GM. They had to agree to the terms the government set if they wanted the bailout money. Sounds like the definition of coercion to me. (b) Looks like all they needed to do was look at buy-sell agreements that took place 18 months after the bailout and see what GM dealers were able to do because they had 18 months to wind down, and a large number got there franchises"un-terminated" when the arbitration board was set after the Senate hearings 12 months later. After the Chrysler dealers had already been closed - and in many cases, had their franchises gifted to factory favorites. Those GM dealers are either still operating or got so disgusted they sold out rather than continue doing business with a company that made it clear they did not want them.
