Chrysler is in Bankruptcy Court. The list of dealers to be closed was drawn up prior to filing as part of their restructuring plans. They are just executing those plans - with approval of the court.
The dealer has not had his day in court.
He can, and some dealers have, challenge the decisions in court as part of the bankruptcy process, however the options are narrow and the rules are iron hard. He is probably not going to come away with anything except a very high legal bill.
In a bankruptcy there are few good choices. I've been there and done that, ate a half million and turned the page.
There are going to be a lot of good people in this situation before this is all over. On the flip side, there are a lot of opportunities to make money in the rubble.
I was under the impression that the executive branch of the federal government (Obama and his henchmen) was dictating the terms of the bankruptcy, in ways that might well be illegal.