Lake Country car dealers fight Chrysler's consolidation plans
Dealerships may seek damages for future losses

By JEFF RUMAGE - GM Today Staff

May 28, 2009


OCONOMOWOC - Two Lake Country auto dealers are fighting back against Chrysler's plans to cut them out of new vehicle sales, claiming the national auto manufacturer is violating state law.

Thirteen Wisconsin dealers, including Lakeland Pontiac GMC in the town of Oconomowoc and John Quaden Dodge in Delafield, filed an objection Tuesday in the Chrysler bankruptcy case pending in a federal bankruptcy court.

"It's just wrong what they're trying to do," Lakeland co-owner Tom Manthy said of Chrysler's plans to eliminate 789 dealerships nationwide and 18 dealerships in the state. "We don't cost them any money."

Lakeland Pontiac GMC and John Quaden Dodge both plan to stay in business, even though they will be unable to sell new Chrysler, Dodge and Jeep vehicles. Arguing that Chrysler breached its agreements with the dealers, the objection claims dealers are entitled to damages for lost future profits.

"These claims, individually and in the aggregate, will be substantial," Madison attorney Paul Norman wrote in the 44-page objection.

Manthy said he has not determined how much his dealership would lose.

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E-mail: jrumage@conleynet.com


This story appeared in The Freeman on May 28, 2009.