Chrysler ratcheted up the tension surrounding its court-supervised restructuring yesterday by asking for permission to walk away from contracts with almost 800 of its 3,200 dealers.
The move coincided with pressure from the US government 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.
The rejected dealers, many with powerful political connections, are likely to fight Chrysler's request.
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