Financial Times FT.com

Chrysler asks to cut 25% of US dealers

By Bernard Simon in Toronto

Published: May 14 2009 16:11 | Last updated: May 15 2009 01:25

Chrysler ratcheted up the tension surrounding its court-supervised restructuring on Thursday by asking for permission to walk away from contracts with almost 800 of its 3,200 dealers.

The move coincided with government pressure on the ailing Detroit carmaker to speed up its restructuring with the goal of emerging from Chapter 11 by the end of this month, when its bigger rival General Motors is set to file for bankruptcy protection.

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