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]
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]
Sign in to post
Please sign in to leave a comment.
Continue