UPDATE 3-US senators try to get Chrysler dealers more time
* Sen. Hutchison seeks amendment to war funding bill
* Seeks extension beyond June 9 deadline for dealers
* Chrysler expected to issue letter to dealers on inventory
* 800 dealers having franchises terminated (Adds Hutchison on planned Chrysler letter in paragraphs 3-5)
WASHINGTON, May 21 (Reuters) - U.S. senators were trying to find a way on Thursday to give Chrysler car dealers facing closure more time to unload their inventories by adding provisions to a pending war funding bill.
Republican Senator Kay Bailey Hutchison of Texas was negotiating an amendment aimed at giving the nearly 800 dealers who had their franchises terminated under Chrysler's bankruptcy proceedings more time to wind down their operations beyond the June 9 deadline set.
She said Chrysler President Jim Press would soon issue a letter spelling out more clearly what Chrysler would do to address the inventory of automobiles and parts. The company has so far has said it would not take back inventory or tools from dealers being closed but may help redistribute them.
"We agreed that we both wanted something out today that would give these dealers a definitive plan so they would know what they could count on, not having to worry about inventory was number one on the list," Hutchison said on the Senate floor. Continued...

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