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Monday's major development in the bankruptcy of Chrysler Motors was the Supreme Court's decision to freeze its merger with Fiat while it considered a lawsuit brought by aggrieved pension funds. CNBC's Phil LeBeau followed up on NBC: "Fiat claimed the deal could unravel if it is not approved by Monday," he warned without affording that scenario too much credence. "Legal experts believe the Supreme Court is unlikely to block the sale."
Back in bankruptcy court, Chrysler was given the green light to cancel its relationship with 789 dealerships. Chrysler had claimed that unprofitable dealers cost the company $1.5bn annually, underinvesting in advertising, facilities, personnel and customer services, ABC's Chris Bury reported. "Half the cut dealers sold fewer than 100 cars" each year. Most of those losing their Chrysler-Plymouth-Dodge-Jeep shingles will not go out of business, CBS' Ben Tracy explained, they will just lose the company's rebates and new-car warranties. He introduced us to Star Chrysler-Jeep in the Los Angeles suburbs. "We become Star Pre-owned Super Center," announced the used-car-salesman-to-be.
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