Report: Chrysler won’t reinstate dealers

March 10, 2010

March 10, 2010—Chrysler Group has signaled that it will not follow General Motors’ plan to reinstate 661 dealerships, according to a report Tuesday by Automotive News.

Chrysler Group noted the number of arbitration claims involving its 789 former dealers has dropped 5 percent, from 418 to fewer than 400.

An unidentified source close to Chrysler told Automotive News that GM’s rejected dealers are still in business, meaning they have contracts to sell cars, while Chrysler’s are not.

“You can’t legally reinstate something you never had a contract with,” the source said.

Chrysler told Automotive News in an email that dealer appointments would be a function of the arbitration proceedings. If an arbitrator rules in favor of the dealership, it will get a letter of intent from Chrysler.

But under new arbitration laws, Chrysler could pursue private settlement talks if it wanted to.

“Chrysler’s looking for technicalities to hide behind,” Alan Spitzer, co-leader of the Committee to Restore Dealer Rights, told Automotive News. “The law allows them to negotiate outside arbitration.”

Subscribe to our Newsletters

Latest in Law

Rob Grieve/Nylund's Collision Center
Drug-testing Car
Theft-recovery vehicles often take a dark and dangerous journey.
Feb. 18, 2025
Adobe Stock 537570901
Hammer gavel judge with car vehicle accident
Repairers need every regulatory tool at their disposal to make sure insurers are acting fairly and complying with the law, the ASA says.
Aug. 28, 2024
AdobeStock
Man posting to social media in the dark
A solid policy will provide clarity and protect your business and protect privacy.
Oct. 26, 2023