Motor Inn to close door on Chrysler dealership

The word came down late Tuesday afternoon from federal bankruptcy court -- Chrysler is clear to cut ties with 789 franchise dealerships, including Motor Inn of Le Mars.

The judge's order stated that franchises can no longer act as authorized Chrysler, Dodge and Jeep dealers, effective immediately, according to a story from the Associated Press.

That means those dealerships cannot sell new vehicles of those brands, nor can they offer rebates and service agreements through Chrysler.

Steve Ohm, general manager/co-owner of Motor Inn, said with the deadline looming, he'd sold a good amount of Chryslers, Dodges and Jeeps off his lot since the announcement dealerships' franchises would be cut less than a month ago.

Motor Inn of Le Mars doesn't have many new Chrysler vehicles left, he said, and those will be relocated to other dealerships.

The Chrysler sign on his lot will eventually be removed, he said.

Motor Inn of Le Mars will still be in the car business. The GM franchise there will continue, as will Motor Inn's used car sales.

Ohm said he'd heard rumblings of extending the deadline for the 789 dealerships with terminated Chrysler franchises to June 15.

More than 25 attorneys, arguing in bankruptcy court on behalf of hundreds of dealers from across the United States, claimed that Chrysler would gain little by ending the franchise agreements, according to the Associated Press.

The 789 dealerships with terminated franchises add up to 25 percent of Chrysler dealers, according to Steven Landry, Chrysler's executive vice president, North American sales and marketing, global service and parts.

June 15 is also the deadline for the proposed sale of Chrysler's assets to Fiat Group SpA of Italy.

Negotiations and Chrysler's bankruptcy court proceedings hit a roadblock Monday when Supreme Court Justice Ruth Bader Ginsburg decided to delay the sale.