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Ohio Attorney General Files Another Objection to Sale of Chrysler

Ohio Attorney General Richard Cordray has filed yet another objection to the impending sale of Chrysler LLC, citing concerns that the deal would sidestep state laws that regulate automobile dealerships. Cordray, along with officials from nine other states, filed a limited objection and statement in support of auto dealers this week in U.S. Bankruptcy Court of New York.

The attorneys general made the argument that the sale shouldn't allow the bankrupt automaker to escape the requirements of state laws, including those which pertain to the termination of dealership agreements.

In a release, Cordray said:

“On less than 30 days’ notice, Chrysler proposes to reject dozens of dealer agreements in Ohio. Some consideration should be given to those dealers, and Chrysler shouldn’t be allowed to disregard its obligations under Ohio law.”

In mid-May, Chrysler announced plans to eliminate 789 dealerships from its networ. This week, Automotive News reported that a Bankruptcy Court hearing has been set for June 3 on the company's move to revoke the franchises.

Cordray filed objections to the sale previously over the effects that a partnership with Italian automaker Fiat could have on Ohio's workers' compensation system and Lemon Laws. He said that Ohio attorneys and those from other states are negotiating with the Michigan based automaker on both issues.

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