US Treasury: We're Not Involved in Chrysler's Dealership Cut!

Following Chrysler's announcement that it will reject 789 dealers in the United States, the US Treasury officials stepped in the front of the media representatives and insisted they haven't influenced the American automaker's decision in any way. Chrysler earlier today confirmed that it has filed a motion with the US Bankruptcy Court to reject 789 dealers, while the others will continue operations with the New Chrysler, a.k.a. the revamped automaker who joined forces with Fiat.

The US Treasure said that although this decision clearly affects dealers and their employees, it is just another step towards a successful revamp of the American automaker who is looking to become competitive with the help of Fiat.

Here are a few paragraphs we've selected for your from the Treasure Department's statement rolled out today:

A month ago, Chrysler faced the real prospect of liquidation, which would have eliminated all 3,200 of the company's dealers. As a result of the successful Chrysler-Fiat partnership and the backing of the President's Auto Task Force, Chrysler is now positioned to move forward with a plan that retains 75% of its dealers – representing 87% of Chrysler sales.

Consistent with the Task Force's role in the restructuring process, it was not involved in the specific design or implementation of Chrysler's dealer consolidation plan. The Task Force played no role in deciding which dealers, or how many dealers, were part of Chrysler's announcement today.

We understand that this rationalization will be difficult on the dealers that will no longer be selling Chrysler cars and on the communities in which they operate. However, the sacrifices by the dealer community – alongside those of auto workers, suppliers, creditors, and other Chrysler stakeholders – are necessary for this company and the industry to succeed.

And a stronger Chrysler, supported by an efficient and effective dealer network, will provide more stability for current employees and the prospect for future employment growth.