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.
A little more than a year ago, General Motors had in excess of 6,000 dealerships across the country. In the viability plan GM submitted to Congress the automaker stated it would shut down 400 dealerships every year, shedding 1,600 of them by 2012. The General said it eventually wanted to get down to 4,000 showrooms at some point in the future. According the the latest reports, GM is well ahead of its own schedule: it will have just 4,500 dealership by the end of this year, a 1,650-site drop from
We have no proof that General Motors is getting payback on the three dealers who founded the Committee to Restore Dealer Rights (CRDR), Tammy Darvish, Jack Fitzgerald and Alan Spitzer. But we do know that retribution is a game often played by all sides, and that Darvish, Fitzgerald and Spitzer definitely believe GM has taken the first shot.
According to Automotive News (which is citing four separate yet unknown sources), General Motors is preparing to reinstate more than 580 dealers that had applied for government-mediated arbitration to keep their franchises in the United States. For those keeping track, 580 represents exactly half of the 1,160 dealerships that signed up to go through the arbitration process. These selected dealerships would potentially be reinstated outside the process of arbitration.
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