Chrysler LLC dealers are expecting to learn their individual fates by Thursday as the automaker chooses which dealerships will be part of a new and leaner company that emerges from bankruptcy.
The assets of Chrysler will be sold to a new company allied with Fiat SpA. Bankruptcy Judge Arthur Gonzalez will hear the motion to approve the sale May 27 in a deal that could close June 15 with the goal of emerging from bankruptcy a few weeks later.
Dealers are to be notified of their status with the new company 13 days prior to the sale date. Initially the key asset sale hearing was to be May 21, which had dealers expecting news Friday. But when Gonzalez pushed back the hearing date, all other deadlines were adjusted accordingly.
Chrysler Vice Chairman Jim Press and Steve Landry, head of sales, held a conference call with dealers Friday, but would not go into how many dealers would be kept, insisting plans have not been finalized.
Documents filed with the court say only that the company will reduce its incentive payment to dealers by 25 percent in May and by 50 percent in June.