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Despite selling company-owned CA dealer, Chrysler may face fines

Automotive News reports that the California Department of Motor Vehicles may still seek to fine Chrysler even after the automaker reached an agreement to sell its factory-owned Los Angeles dealership. Chrysler garnered the ire of the DMV by infringing on California franchise laws, though the automaker hoped to avoid any censure by selling its Motor Village of Los Angeles showroom. Now, CDMV is reportedly saying that the company made false statements regarding the dealership's ownership. If a settlement is reached, Chrysler could wind up paying restitution to private Chrysler dealerships within a 10-mile radius of the factory-owned store.

If both sides can't reach an agreement, Chrysler will be forced to endure a hearing on the matter. Chrysler has already reached a tentative agreement with Dennis Lin, the owner of New Century Automotive Group, to purchase Motor Village LA from the automaker. The deal is set to close this month. Chrysler has told the California New Motor Vehicle Board that the automaker has already put steps in place to ensure nothing like this happens again in the future.

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