On Monday, May 4 a U.S. bankruptcy court heard testimony that Chrysler LLC's dealership network is on the brink of collapse as hundreds of dealers close their doors and wary consumers shy away from the troubled automaker's showrooms.

The co-chairman of Chrysler's National Dealer Counsel, James Arrigo, reported a sales drop off of 50% for this year. He told the Manhattan court, "People are walking in front of the door, saying 'I would be interested, but I have no idea if you're going to be here in two to three years.'"

Chrysler, which filed for bankruptcy on Thursday, April 20, hopes to sell its most favorable assets to a new company under the management of Fiat S.P.A. of Italy with court protection lasting as briefly as 30 days with oversight by the Obama administration.

During his testimony, Arrigo, who owns two dealerships in Florida, said, "Our dealership costs $2 million to run, we've cut costs to $1.4 million, but with sales where they are we can't sustain the store at those numbers."

At one time Arrigo's businesses averaged 450 sales a month. In April, he sold 130, the worst total for the month since 1993. Approximately 3,200 Chrysler dealers who are in similar situations are waiting for the outcome of the Manhattan proceedings, which will determine their future survival.