• Jul 28, 2010
Arbitrators have finished wading through the 105 cases of rejected Chrysler dealerships, determining that Chrysler was right to send the lots packing in 73 instances. According to Automotive News, those who weighed in on the cases typically cited the carmaker's plans to sell all four of its brands through the same dealerships as reason enough for ousting those that couldn't come up with the facilities to do so.

Chrysler offered around 232 dealers the chance to return to the company after kicking 789 sites off of the corporate life boat. The 32 dealerships that won their cases were part of the group that received the Pentastar olive branch, but to date, only 29 of the 232 have signed letters of intent with Chrysler that outline their terms of reinstatement. Few of those that won their arbitration case have accepted the letter of intent, though that number is expected to grow over the next few months.

There is some indication, however, that not every dealer is happy with their final agreements. Some have come forward with complaints that the terms of reinstatement are harder for those that got the boot than for dealerships that managed to survive the company's bankruptcy. Calls for facility upgrades have caused at least two dealers to file lawsuits contesting the letters of intent.

[Source: Automotive News – sub. req.| Image: Jeff Robertson/AP]


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    • 1 Second Ago
  • 6 Comments
      • 4 Years Ago
      Maybe it's just me, but why can't Autoblog publish WHICH dealers are on the winner and loser list if they know the numbers????
        • 4 Years Ago
        Amen! That is the most important part!
      • 4 Years Ago
      i know that one of my local dealerships go its chrysler/jeep back! this dealership, courtesy car city in moline illinois, sells more than just them though! all together they sell chrysler, jeep, nissan, lincoln, mercury and kia! they were one of the lucky ones that didnt have to close their doors, thanks to everything else they sell!
      • 4 Years Ago
      "Calls for facility upgrades have caused at least two dealers to file lawsuits contesting the letters of intent. "

      It's my guess that some were shut down in the first place for not carrying all of the sub-brands, so upgrades would be necessary, and like what other dealers have had to go through over the past year.

      For example, just down the street a Dodge dealer was shuttered and the Chrysler/Jeep nearby just finished 'facility upgrades' to add Dodge offerings. It's probably something similar, where Chrysler wants all brands to be represented at every dealership (has been pushing this since before the meltdown).

        • 4 Years Ago
        Oh, and it apparently now has a 'Ram' sign on the front....forgot about that one...so Chrysler/Dodge/Jeep/Ram.


        Makes you almost forget that Plymouth ever existed. ;)
      • 4 Years Ago
      Concerning a list of dealers, Chrysler stopped reporting individual arbitration results about halfway through the program. (Initially they were issuing press releases naming the dealers)

      There's a partial list on DealershipForum.com

      The thread names 28 of the dealers who won their arbitration case and 34 who lost their case. Here's the link: http://www.dealershipforum.com/forums/showthread.php?t=2026