• Mar 30, 2010
Company representatives for Chrysler have been in contact with at least 50 dealerships regarding reinstatement into the the automaker's dealer network. According to a leader who represents the 400-plus dealerships seeking arbitration, the dealers contacted will receive intent letters to begin the lengthy reinstatement process.

Two weeks ago, Chrysler signaled that it had no intention to reinstate any dealers, who were seeking arbitration, back into the network. Now Chrysler has released a statement confirming that they have been in contact with the dealers and will issues letters of intent for reinstatement.

According to Tamara Darvis, a co-leader of the Committee to Restore Dealer Rights, more than a dozen dealers contacted her regarding discussions with Chrysler representatives and the promise of letters of intent to begin the reinstatement process. The letters are expected to be mailed immediately.

Right now, it's unclear if any additional dealerships have been contacted regarding reinstatement, but it's believed that up to 30 more dealerships could be included. According to several reports, the arbitration process is long and costly to the automaker, but reinstatement of dealerships seeking arbitration may actually be more economically feasible for Chrysler and could become a solution for more and more dealerships seeking arbitration.

[Source: Automotive News - Sub. Req.]


I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.


    • 1 Second Ago
  • 10 Comments
      • 4 Years Ago
      Do you have to show a line of Jeep Compasses? Chrysler has much better looking stuff - 300's, Jeep GC, Viper's, Challengers, etc. Even the Patriot is so much nicer. Are you trying to make us lose our breakfast?
        • 4 Years Ago
        "Even the Patriot is so much nicer."

        Umm, most of the vehicles in the picture *are* Patriots
        • 4 Years Ago
        Well said.
        • 4 Years Ago
        There are a few PT Cruisers to the left if you want to feel any more sick. :P

        Could have been worse, could have been a line of Sebrings.
        • 4 Years Ago
        God, that's like the worst car ever. Why are we being subjected to this so early in the morning. Please change the picture to a Challenger or Viper.
      • 4 Years Ago
      Drove by my local Dodge dealer and it look like it's closed. They have one Dodge Ram on the front yard, a red 2008. I don't think I saw one new car on the entire property when two years ago they had acres of trucks, cars and vans. Looked like they had more Chevys on the used car side than Chryslers.

      When they sold us one transmission sensor at a time (2000 Grand Caravan), my mom started looking at a new car. She bought a 2007 Impala. I told the service manager after a bolt fell off (after the last trans sensor was replaced) "This is why she owns a Chevy now." He stopped talking to me. Instead of offering to replace the sensors, they tried to get her to buy a new transmission for over $2000. Had then just change the fluid and off we went. That was 30,000 miles ago. No problems.

      The Impala has been an excellent vehicle. I can get 36MPG out of it. It moves well with 211hp, and is pretty engaging to drive. It does need a 5speed trans, big gap between third and fourth, but I have an Aurora if I need go fast zoomy sounds.

      Anyway. I know why my local Dodge dealer looks like a ghost town. I could deal with old engines, old transmissions (if they didn't grenade....) and poor interiors. But I can't deal with crappy service bested by the McDonald's next door.
      • 4 Years Ago
      Another sign that things have been handled badly, and in a knee-jerk reactive way.

      If Bankruptcy had been handled properly, they may have taken a moment to slow down, and down-size responsibly, and in a rational fashion.

      Jerking franchise holders around, in some off-then-on-again scheme is just cruel. These people have to plan, and take care of their families.

      jerking the rug out from under people, and then coming back again later with a smile and a hand-shake is completely undermining any trust.

      They didn't learn from decades of mistakes, and then made more mistakes when being rushed through bankruptcy. What is to say they are honorable, or trust worthy now?

      What happens if they get into fiscal trouble again? they aren't exactly on the fiscal Rock of Gibraltar right now, anyway.

      There is a reason things aren't supposed to be done like this. This part right here is the glad-handing, and the "Aww, shucks, we were just scared... we didn't mean it." phase. It can change again.
        • 4 Years Ago
        Quote: ""If Bankruptcy had been handled properly, they may have taken a moment to slow down, and down-size responsibly, and in a rational fashion.""


        ???

        As you might recall, it was the Obama Administrations's Auto Czar that forced these closures on GM and Chrysler.

        Chrysler was reluctant to close any dealerships.

        Rick Wagoner said repeatedly that GM's small rural dealerships were one of the strengths of the company and shouldn't be closed.

        This isn't ancient history, it was only 6 months ago.
        • 4 Years Ago
        That is true, and that even bolsters my long-held position that the legislative and executive branches of government should have left well enough alone with bailing out anyone.

        They should have let the bankruptcy proceed in a way that has been tried, true, and refined over time, that ideally should allow for reasoned resolution and compromise to resolve what is left of the best compromise for all involved, not rash, mistaken behavior being rushed through.
      • 4 Years Ago
      So what? No Viper, no sale.