Back in January, Chrysler opened Motor Village in downtown Los Angeles. The hope was that the automaker could create a modern dealership with a customer-focused mission that would help increase market share in LA. Instead, the dealership is costing Chrysler nearly a million dollars.

Automotive News reports that Chrysler has settled with the California Department of Motor Vehicles to the tune of $955,000. Chrysler's ownership of Motor Village went against a California law that stipulates that an automaker cannot own a dealership within 10 miles of a privately owned dealership of the same brand. Chrysler was reportedly fined $750,000 and it also paid $160,000 for legal fees and $45,000 for post-settlement audits.

While Chrysler's ownership of the facility cost the company $955,000, its stake in the dealership was only temporary. Team Pentastar sold the facility in October to Dennis Lin, who owns New Century Automotive Group of Los Angeles. The dealership was split into two retail stores; one with Chrysler, Dodge, Ram and Jeep models and the other with Fiat models.


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    • 1 Second Ago
  • 11 Comments
      camaroz1985
      • 3 Years Ago
      Another way for California's gov't to get back money lost through corruption and mismanagement.
      • 3 Years Ago
      [blocked]
      budwsr25
      • 3 Years Ago
      They should not have to pay a penny. This was stupid.
      Ed
      • 3 Years Ago
      Do the commenters here have any knowledge of history, and the issues poised by vertical monopolies? Here's some help: http://www.jstor.org/pss/1247017
      cskm289
      • 3 Years Ago
      Just the cost of doing business with franchised California dealers.
      • 3 Years Ago
      [blocked]
      belldn3
      • 3 Years Ago
      So chrysler screwed itself..........That's nothing new. Penalize by its own stupidity.
      hiddenbrookllc
      • 3 Years Ago
      Government at it's best...Private enterprises trying to get things down...Let's fine them...The new American way.
      obliterait
      • 3 Years Ago
      The high fine is against the Bill of Rights, see amendment 8 at www.TrueBillofRights.com
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