Chrysler is reportedly looking into selling Motor Village, its prized company-owned downtown LA dealership, to settle a dispute with franchise Chrysler dealers. According to California state law, a company-owned dealership cannot reside anywhere within a 10-mile radius of a franchise dealer. Chrysler's prized Motor Village is within 10 miles of three franchise dealers.
The California Department of Motor Vehicles is investigating the situation at the urging of the California New Car Dealers Association, which has prompted Chrysler to look for a buyer. If the DMV decides Chrysler is in the wrong, the company stands to lose its license to operate the facility. Selling the location to a franchise dealer would settle the dispute once and for all. Whatever shakes out, the potential loss of its business license and flagship dealership must be a bitter pill for Chrysler to swallow.