• Mar 29, 2011
Chrysler Motor Village LA – Click above for high-res image gallery

Chrysler put a lot of work into its five-story, factory-owner dealership located in Los Angeles, California. Home to all brands under the Chrysler umbrella, Motor Village is also the first U.S. home for Fiat's return to the states. But not everyone is thrilled about its arrival, and some have made the claim that it's actually illegal.

According to the California New Car Dealers Association, manufacturers are not allowed to operate dealerships within 10 miles of independently owned same-make stores, according to California law. The CNCDA believes that Motor Village principal Howard Drake has no serious monetary investment in the facility, and that Chrysler is simply utilizing his name as a legal loophole. Chrysler, of course, disagrees with the claims and the issue will head to California's New Motor Vehicle Board.



[Source: Automotive News – sub. req. | Image: Charley Gallay/Getty Images for Chrysler]


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    • 1 Second Ago
  • 36 Comments
      • 3 Years Ago
      Those dealers better shut it up.
      Obama will unlease his Car CZAR on them and decide which of those dealerships will be added to their "we are closing you" list.
        • 3 Years Ago
        @ Invisible
        Clearly you don't understand ANOTHER issue, but that doesn't stop you for spewing your nonsense forth.

        These too-strong dealer laws are ALL state laws, and nearly every state in the Union has them. They were to protect mom & pop dealerships from an extremely powerful Big 3 back in the day, but not only has Detroit's power dramatically been reduced, but these mom and pop dealerships are now billion dollar corporations owning hundreds of dealerships.
        • 3 Years Ago
        Don't mind invisibleweenie. He's just upset that he can't get any poon because of his invisibleweenie. :)
        • 3 Years Ago
        @ Invisible

        So numbnuts, was FAUX News just too centrist for you that you had to link up to religious blogs to get the tainted propaganda to supposedly back-up your theories?? That fact that you even consider blogs to be "news" is laughable to begin with.

        Yeah, Obama is SUCH a polarized politician that he even let a left-wing Democrat get picked to run GM. Oh wait... no he didn't. Both the current and former CEO are staunch Republicans, and he's picked more people from the other party to join his administration than any other president in history.

        Ahh... sorry to bust up your teabagger "logic" but I'm sure you'll find a way to twist and turn it to fit your whacked-out view of the world.
        • 3 Years Ago
        Glenn Beck called. He said he wants his crazy back.
        • 3 Years Ago
        californians are whiners.
        • 3 Years Ago
        • 3 Years Ago
        Clavius, are you another that is going to tell us that Obama and his car CZAR did not in fact pick a bunch of dealerships and close them?
        • 3 Years Ago
        Of course it is logical to have non-competes for the company from which you franchise (that is what a dealership is). Chrysler can simply allocate product preferences to themselves while their regional dealer network is starved for relevant products. So we can't live on the assumption that all franchisees are billionaires, because you are just ignoring the numerous small guys that are left. And the employees of billionaires can be laid off and financially damaged as well.

        Besides that, in the eyes of the dealers the car companies that have survived the market turmoil are much more powerful than they were 5 years ago when there was a glut of franchise opportunities from all the nameplates that have since disappeared.
        • 3 Years Ago
        For Hazdaz, J.Smegma, and all others that have your fingers stuck in your ears and screaming nanananannanan so you can't hear the truth.

        How about this source such as the Democratic party's very own campaign radio station.

        http://www.npr.org/blogs/thetwo-way/2010/07/19/128625027/obama-team-overdid-car-dealer-closings-watchdog

        • 3 Years Ago
        What does that even mean? Your tone is anti-goverment, yet you're suggesting that Obama would step in to limit regulations on where you can open a dealership...
        • 3 Years Ago
        True,
        and none of them have disproved the truth I posted. They just whine and fling personal insults and attacks when you post the truth they don't want posted.
        • 3 Years Ago
        My thoughts pretty much as well. Why don't they just shut down the other dealerships by executive order like they did before. Problem Solved.
        • 3 Years Ago
        So Hazdaz,
        Are you trying to tell us that Obama's Car CZAR did not pick those dealerships and close them?

        It's all some fabricated right-wing lie?
      • 3 Years Ago
      Dear California:

      This (and 1000 other things) is the main reason you are a broken and bankrupt state.

      You tax everything to oblivion and make businesses jump through all sorts of hoops... please break off and float out into the pacific somewhere.

        • 3 Years Ago
        Every state has laws like this, not just California. Franchisees in general, and car dealers are big campaign contributors, especially at the state level.

        Also, they're generally Republican.
        • 3 Years Ago
        So thats also why they are 8th largest economy in the world? I'm sure the rape of the wall street had nothing to do with it either...

        • 3 Years Ago
        California is a broken state? Ive been living here all of my life, last I checked the sun still comes out and apart from traffic, life is pretty much the same for the most part.

        Since when? There might be a budget dilemma at the moment, but then again its not something the rest of the country isn't going through. I mean it could be worse, we could be the.... south. Or Montana.

        I see that store a few times a week though, its quite a looker, not far from the Felix Chevrolet Dealership with the classic Felix the Cat neon sign.
        • 3 Years Ago
        Err... even if you ignore all other reasons that people have stated for this law.

        Would you like to see a toyota dealership every 5 miles? Hell there are freaking 3 star bucks near my place and it's within 3 miles of each other.

        • 3 Years Ago
        Indeed. It's not a surprise businesses are fleeing California and moving to better run states like Texas.
      • 3 Years Ago
      What do they think is going to happen the company store is going to offer better customer service and lower prices. That is unlikely going to happen.
      • 3 Years Ago
      In the end, it is one of the cooler dealerships in LA--looks great from the 110.
      • 3 Years Ago
      The only reason car dealerships exist in the first place is because state law requires them. We need to end that monopoly and allow people to buy direct from factor or hell, why not buy your car from Wall Mart or Costco....
      • 3 Years Ago
      I am all for corporate-owned stores. Dealers nowadays are owned by major public companies that owns hundreds of other dealers. The days of the family-owned single dealership, where you could negotiate directly with the owner are almost gone.

      So we might as well have a corporate-owned store.
        • 3 Years Ago
        I'd prefer to order mine online and have it delivered to my home.
        • 3 Years Ago
        John, some dealers do actually offer that. I've never tried it, but apparently it is possible from a few dealers here. You submit your request online, they call you back, and apparently the deal is done in 15 minutes. I don't know how that is possible given the experiences all the times I've gone car shopping... but anyway, that is what they claim. They'll then deliver it to you within a few hours to your residence or work place.
        • 3 Years Ago
        @ Richard S.

        Those antiquated state dealer laws where there to protect small mom & pop type of dealers against the massive companies that made the products that they sell.

        Now there are few truly independent small dealership left. Herb Chambers was one of the original large dealerships that existed and the guy is now a billionaire (no joke). Sure, there should be some dealership laws, but not to the extent that they exist now.

        But unfortunately its almost impossible to change that... these local dealerships have a LOT of political sway in their states and that's where those laws are determined.
      • 3 Years Ago
      This article implies that the Fiat 500 still is not out in the wild. It finally is, is it not?

      Confused.
      • 3 Years Ago
      The dealerships with their state governments to back them up with laws that affected dealership agreements retroactively are as big an impediment to the US auto industry as the Union.

      Half of those guys have gotten it. But the other half have dealerships and attitudes that haven't changed from the pre-import 70's.
        • 3 Years Ago
        So thats also why they are 8th largest economy in the world? I'm sure the rape of the wall street had nothing to do with it either...
        • 3 Years Ago
        AHH replied to the wrong comment... sonofa...
        • 3 Years Ago
        I'd stay domestic stealerships and state laws that support them are almost a bigger impediment to Big 3 success than the unions.

        All the dealers ought to be manufacturer owned. Or, at the very least, there shouldn't be laws protecting them and privileging them above manufacturer owned dealers. Let the market decide.
        • 3 Years Ago
        It's difficult to believe that there are such clearly one-sided laws on the books, but at the same time, sadly it is easy to believe. What a ridiculous law.
      • 3 Years Ago
      I think company owned stores are a great idea. Apple does the same thing. Chrysler will have much better control of the quality of service/customer support that way. With independent dealers it is very hit or miss and some of them are downright nasty (eg. that a**hole dealer that had us walking outside in the lot for 20 minutes at freezing temperatures while asking us a million questions about why we want to take a test drive).
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