WASHINGTON -- Chrysler Group is asking the U.S. Bankruptcy Court to block a Colorado dealer reinstatement law, arguing the law is pre-empted by bankruptcy laws.
The law requires Chrysler and General Motors Co. to offer a rejected dealership the right of first refusal if the automaker wants to reopen a point in the rejected dealer's market. If the automaker has awarded such a franchise, it must offer to reinstate the rejected dealership or compensate it. In December, Chrysler challenged similar laws enacted by Illinois, Oregon, Maine and North Carolina. North Carolina backed off enforcement in a settlement with Chrysler. Illinois, Oregon and Maine are contesting the challenge.