Chrysler dealers file legal objection

Six from Northeast Wisconsin

Updated: Thursday, 28 May 2009, 5:19 PM CDT
Published : Thursday, 28 May 2009, 10:53 AM CDT

MILWAUKEE (AP) - Some Chrysler dealers in Wisconsin have filed an objection in federal bankruptcy court in New York claiming they are entitled to damages if their franchise agreements are terminated.

The motion by 13 state dealers comes before a hearing in New York Wednesday on Chrysler's proposal to end dealership agreements with nearly 800 dealers nationwide, including 18 in Wisconsin.

Six of those dealers that filed objections are in Northeast Wisconsin. They are: Ernie von Schledorn, Lomira; Mueller, Oshkosh; Plach, New London; Van Lieshout & Simon, Kaukauna; and Wolff, Plymouth.

The 44-page objection filed by Madison lawyer Paul Norman says the Wisconsin dealers that lose the right to sell new Chrysler, Dodge and Jeep vehicles will be entitled to damages for future lost profits under the state's vehicle franchise law.

Chrysler says it needs to reduce its dealerships to stop them from competing against one another. But, the Wisconsin dealers say Chrysler's declining market share is because of the automaker's bloated production costs.

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