NEW YORK - May 5, 2009 - Chrysler's car dealership network is on the verge of collapse, a U.S. bankruptcy court heard on Monday, as hundreds of dealerships have closed their doors this year and uncertainty about the company's future is driving consumers away.

"A lot of these guys right now are just trying to survive," James Arrigo, the co-chairman of Chrysler's National Dealer Council said of the company's dealers at a hearing on Monday in U.S. bankruptcy court in Manhattan.

Arrigo, who is one of the company's top-ten selling dealers, according to court papers, says that even he has seen a dropoff of about 50 percent in car sales this year.

"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," Arrigo told the packed Manhattan courtroom on Monday.

Almost 3,200 Chrysler dealerships around the country are on the edge of their seats watching the outcome of Chrysler's bankruptcy proceedings in Manhattan.