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Dealerships justify staying in business

Canceling franchises at dealerships that haven't performed well is a key part of Chrysler and GM's restructuring plans. But dealership owners say closing them down will cause job losses across the country. Tamara Keith reports.

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Bill Radke: Today, a bankruptcy judge will decide whether Chrysler can terminate almost 800 of its dealers. The dealers say that would be a mistake. Congress is also looking into this issue at a hearing in Washington this afternoon, and Tamara Keith has our story.


Tamara Keith: The Senate Commerce committee is scheduled to hear from Chrysler’s president and GM’s CEO. Canceling franchises at dealerships that haven’t performed well is a key part of both companies’ restructuring plans.

But dealership owners say keeping their businesses open won’t cost the automakers anything, and closing them down will cause suffering and job loss in communities all over the country. The chairman of the National Automobile Dealers Association will tell senators the process needs more transparency and accountability.

Chrysler dealers told they must close by next week want more time to wind down their operations. GM has told 1,100 dealerships it will not renew their franchise agreements next year.

In Washington, I’m Tamara Keith for Marketplace.

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