Thursday, June 4, 2009

Legal reasoning: words go together but don't mean anything.

Judge: Chrysler has good case for franchise cuts By BREE FOWLER, AP Auto Writer
NEW YORK – The judge overseeing Chrysler's bankruptcy case said Thursday that the automaker has a good case for the termination of 789 of its dealer franchises...under Chrysler LLC's plan, those dealers, which represent about 25 percent of the company's dealer base, will remain with "Old Chrysler," a collection of assets that aren't slated to be sold to a group led by Italy's Fiat Group SpA. Since those leftover assets won't be making vehicles, there would be little use for the dealers that would go with them, Gonzalez said.... no dealer network would be needed," Gonzalez said...****Incredible tautological "reasoning": since the dealers won't go along with the car-making unit, they won't sell cars anyway. But, Judge, why won't they go along with the car-making unit? **** ... Chrysler claims that it needs to reduce its dealer base to a leaner network of about 2,400 dealers in order to emerge from Chapter 11 bankruptcy protection as a stronger company. But the dealers argue that they don't cost the automaker anything. ...

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