July 7, 2009
Chrysler Seeks OK To Cancel 64 GEM Franchises, Cites Poor Sales
Struggling Chrysler has asked the judge in its bankruptcy to approve a plan to cancel electric vehicle franchise agreements with 64 dealers.
Chrysler owns Global Electric Motorcars, best known as GEM, and sells the company's neighborhood electric vehicles -- NEVs (right) -- through some of its dealerships.
GEM has other sales outlets, including stand-alone dealerships, as well.
The automaker has filed papers seeking permission at a July 16 hearing to cancel the GEM franchises of 64 dealers -- some Chrysler, some stand alone -- mainly for lack of sales.
A Chrysler spokeswoman said the request isn't a reflection of poor GEM sales overall,but rather of poor performance by the specific dealerships. "Many are not located in areas where GEMs do well," she said.
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- John O'Dell July 7, 2009, 3:04 AM
- Categories:
- Chrysler, GEM
- Technorati Tags:
- GEM , Global Electric Motorcars, Neighborhood Electric Vehicles, NEVs
