Chrysler and Pure Detroit have agreed to a settlement in the legal wrangling over Chrysler's "Imported from Detroit" tagline. According to The Detroit News, the automaker and T-shirt purveyor have asked a judge to dismiss the lawsuits against one another. Terms of the agreement were not disclosed.
A Federal judge will allow some 75 Chrysler dealers to proceed with a lawsuit against the U.S. Treasury Department, according to Automotive News. The dealers insist that the government violated the Fifth Amendment in administrating the Chrysler bankruptcy when it terminated their dealership franchises.
Automotive News is reporting that Chrysler has failed to stop a clothing manufacturer from selling "Imported from Detroit" apparel on the grounds of trademark infringement. U.S. District Judge Arthur Tarnow ruled in favor of Pure Detroit, saying that the automaker's request failed to show that the manufacturer would suffer any irreparable harm by the apparel company's actions. The judge also pointed out that Chrysler doesn't actually have a trademark on the "Imported from Detroit" slogan. After
Back in June of 2009, Chrysler terminated relationships with 789 dealerships in an effort to cut its dealer network down by 25 percent. A few of those dealerships didn't think too highly of the move, which was orchestrated in part by the federal government. As a result, 64 former Chrysler franchisees have reportedly filed a suit against the United States Treasury and are seeking at least $130 million in damages.
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.
So you're Chrysler, and you hop into the Chapter 11 pool to save your own skin. While you can wash away some of your past sins with a bankruptcy-protection filing, the deal with Chapter 11 is that you've got to come up with a way to get out of your financial pickle and return to profitability. Part of the Chrysler plan to keep its head above water was divestiture of 789 dealers, a very unpopular idea with the rejected sales organizations (and no small number of politicians, whose ears were subse