Houston partner Billy Donley was quoted in a May 14, 2009, Houston Chronicle article, "Chrysler Looks to Close 6 Houston-Area Dealerships."
According to the article, six Houston-area Chrysler dealerships are among the 789 nationwide that Chrysler is seeking court permission to dissolve partnerships with. Chrysler, which has taken $4 billion in federal loans, has been in bankruptcy since April 30. Chrysler officials have said their aim is to hold on to the best-performing dealers and close under-performers.
Affected dealers might not have many options, said Donley. Typically, it's difficult for a manufacturer to terminate a dealer, Donley said, but Chrysler's bankruptcy changes the equation. State laws are more dealer- friendly, but a federal bankruptcy court is more likely to favor Chrysler's interests, Donley said.