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Chrysler slammed Indiana State Treasurer as making demands that would ultimately push the carmaker into liquidation.
[The Treasurer, who represents retirees secured interests for loans made to Chrysler], and oversees pension funds invested in Chrysler debt, has objected to Chrysler LLC's plan to quickly sell itself in bankruptcy, claiming it is a dangerous path (in violation of bankruptcy law), that would hurt pensions for thousands of his state's retirees.
GM faces a series of interim deadlines through this week. That includes a decision expected this week by the German government on the preferred bidder for GM's Opel unit.
GM will also learn on Wednesday how much of its $27 billion in bond debt was tendered in exchange for shares. GM has set a target of slashing 90 percent of its bond debt, a goal analysts see as unreachable.
Rocco Massarelli is down but not out.
"I'm too stubborn to quit and I'm too stupid to go away," said the owner of Richard Chrysler-Jeep-Dodge in the western Chicago suburb of St Charles. "I'm going to keep selling cars and fight this to the end."
Massarelli's dealership is one of 789, out of a total of 3,181 Chrysler dealerships, with which the bankrupt automaker has said it plans to eliminate franchise agreements as of June 9.
Massarelli said he was shocked Chrysler was ditching his franchise, a business his father founded 30 years ago.
"We don't fit the guidelines for closure," Massarelli said. "We're profitable, we've never missed a payment and we've done everything Chrysler has ever asked us to help them out."
Since 2006, he said he has taken more cars whenever Chrysler asked and at one point had 400 new cars on his lot worth $12 million. He bought the local Dodge franchise three years ago for $1.7 million on Chrysler's request.
"Every time Chrysler said they needed us, we were there for them," Massarelli said. "Now they won't even return my calls."
He said Chrysler Financial told him he may sell his inventory to other dealers at a loss of around $3,000 per vehicle. If he loses the franchise, he will have to sell his inventory as used cars, at a loss of around $10,000 per car.
But Massarelli said that is the least of his worries. His 20 remaining staff will be jobless and he has a $4 million mortgage on the dealership.
"That mortgage will be foreclosed on and I could lose my home," he said. "I'll be lucky to walk away with the clothes on my back.
"I'm not asking for a handout, I just want to keep running a business we've managed successfully for decades," he added.