Chrysler selling controversial factory-owned dealership in LA

Chrysler is selling its company-owned dealership in Los Angeles, according to Automotive News. Motor Village of Los Angeles is reportedly set to be sold to New Century Automotive Group in an effort for Chrysler to avoid censure by the California Department of Motor Vehicles. The CDMV recently filed administrative charges against the automaker for improperly operating a factory-owned store. New Century Automotive Group, based in North Hollywood, currently owns a total of six franchise, including three Volkswagen stores as well as Mini, BMW and Infiniti outlets. The deal is slated to close sometime next month.

While Chrysler opened its Motor Village location as a way to evaluate new retail techniques, other local dealers cried foul, saying that the move violated franchise laws. In California, no factory-owned store can occupy a space within 10 square miles of a privately owned dealership.