On Tuesday, May 26, a group of minority dealers filed objection in the U.S. Bankruptcy Court for the Southern District of New York, according to the National Association of Minority Automobile Dealers (NAMAD). This filing was in response to Chrysler's motion to reject certain franchise contracts with its dealers -- especially its minority dealers.
The five dealers, which are all part of NAMAD, received noticed from Chrysler a few weeks ago demanding that they close their doors by June 9. NAMAD president Damon Lester says the elimination of Chrysler dealers has a disparate impact on minority dealers. The court documents that were filed revealed that Hispanics, Native Americans, African Americans and Asian Americans dealerships are being reduced by 15 percent, 22 percent, 27 percent and 32 percent, respectively.
Lester and the affected dealers are asking Chrysler to live up to its end of the bargain. Throughout this turmoil, Lester says he had been asking the automaker to provide reasonable and just compensation and reasonable representation among the dealer ranks based on past promises and programs. Now that the company has filed bankruptcy, NAMAD claims that the automaker is walking away from franchise agreements with specific minority dealers.
VIDEO: How Some Mainstream Chrysler and GM Dealers Are Reacting to Closings
While the bankruptcy judge approved the shotgun marriage of Fiat and Chrysler, I understand the minority dealers' concern. However, based upon the economic times we're in, I don't think they have a leg to stand on. After all of the cuts Chrysler has made recently, it has managed to retain approximately 5 percent of its minority dealers, which is what it had prior to the bankruptcy.
This further highlights why Black Enterprise magazine's annual top 100 dealer list this year only has 75 dealers on it. Dealer revenue has fallen drastically as a result of the economy. One dealer who wasn't on Black Enterprise's listing last year but has managed to climb to the number three spot on this year's ranking is BET founder Bob Johnson. Johnson has been snapping up dealerships across the country, all while he is planning to ax the money-losing pit that is his NBA franchise. Too bad Johnson didn't acquire the Chrysler dealerships in question before they landed on the automaker's hit list. He could have continued to help increase the count of Chrysler's minority dealers.
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Comments: (8)
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By: richard on 6/03/2009 2:32PM
What an ignorant racist story. I guess they should only shut down white owned dealerships. I would prefer that they don't close any dealerships that are making money. It's not Chrysler or GM that is making this decision. It is the people working for the Marxist dictator in the White House.
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By: black republ i can on 6/03/2009 5:34PM
All you Obama supporters were warned,now Obama owns Chrysler and G M C and he`s gonna F*** up health care next. CHANGE YOU CAN BET ON ! !
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By: eric on 6/03/2009 9:18PM
Here, we go again "playing the race card"! Is this all that we can manage to do consistently as a people? We wouldn't, and shouldn't have to even go there if we had more respect for our own people, and tried working together just like everybody else seems to be able to do instead of always trying to play the race card over and over as though its an entitlement! Now, we're no longer the largest minority in the US, The Hispanics are, and they're even kicking our butts now! So, what the heck is wrong with black people? Sorry, we better get used to "not" receiving handouts, because that game is all played out, and just plain tired! Wake up people it's s new day!
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By: s. dAVIS on 6/04/2009 3:23AM
I agree with Black people coming together. We as a People do NOT stick together but thats another story that I'm sure you Don't want to Hear. But lets not take away from the Issue at Hand. OBAMA did not Make this Mess...he Inherited it!!! This Mess was going on All the while Bush was in Office. Hell, this has been going on for the last 12 years or more. IT IS TIME TO GIVE WORKING AMERICANS BACK THEIR COUNTRY. The Big Corporations have had it Long ENUFF.....THEY MADE THEIR MONEY!! What they have done with it is NOT our Problem. Our Problem is the CURRENT Economy!!! It NEEDS Fixing. The only Fallback is a Black Man has the Reins to Lead & the POOR RICH Folks DON'T LIKE IT!!! TOO BAD.....IT'S THE WORKING CLASS' TURN.
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By: black republ i can on 6/04/2009 10:29AM
Whether he made the mess or not he is going about correcting it the wrong way,keep Gov. out of the Auto business,let them restructure with People that know something about the Industry ,not a bunch of Obama pupets that don`t no a damn thing about the auto industry. The new head of New G.M.C. is a pupet put in buy Obama,Obama is Hell bent on producing these small tin foil light weight cars the people don`t want. Obama has already sold G.M.C. Hummer Divison to a chinese co. Obama is shutting down even profitable Chrysler and G.M.C. dealerships and suppliers at everyone`s expense,this man is a socialist,something people don`t seem to get. he hates Capitalism the very thing that made this Country great. I could go on but just let me say this,the idea of a black President sounds good to me i`m all for it, but when you have views like Barrack Obama i don`t care what color you are i`m not voting for you.
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By: Cj on 6/04/2009 11:52AM
Minorities will always' go first to make sure whites have jobs to take care of their families. We are not! Playing the race card we are playing the hand dealt to us.
That's why white's love America so much it takes good care of them. The privilege will always' say it's not! About race. usually the one's saying it not about race are the one's it's happening to.
. one thing about computer's you never really know if the people claiming to be black really is
pay more attention to what people are saying and what you know to be true.
look at what america did to the black farmers
denied their loan's sold their land too whites for pennies on the dollar.At issue is a class-action lawsuit known as the Pigford case. Thousands of farmers sued USDA claiming they had for years been denied government loans and other assistance that routinely went to whites. when the say race card that mean's lie down and let us wall all over you
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By: bill on 6/07/2009 10:36PM
DAMN BLACK PEOPLE SUCK!!!
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By: Rudy Jeffrey on 6/11/2009 4:33AM
To this so called black republican commenting on the current state of the economy,question!have you ever seen a professional sporting event that did not have a referee making sure that the rules observed,Ihavent. I liken the government to being the referee in making sure businesses comply with the law.whitch for the last 30 yrs. they have not.The government has truly been derelict in it's duty.I have not heard mention of something called " ANTITRUST LAWS " sense the republicans have been office. We have not had this concentration of american wealth within such a small per centage of people,PLEASE CORRECT ME IF I'M WRONGE,( 1.50% ),who at the turn of the last century where called "ROBBER BARONS".SUCH AS THE ROCKERFELLERS, STANDARD OIL TRUST,J.P. MORGANS,RAILROAD MANOPOLIES,MINNING etc. The wealthy elite are in the process of cicling the wagons around themselves and the money with institutions such as the World Bank and the International Money Fund.I could go on but I'll leave you with this,GOOGLE- GREAT WESTERN FRUTE CO.
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