Litigation

By: Stephen P. Lagoy

After initially indicating that terminated dealers would be reinstated through the federally-mandated arbitration procedure or not at all [see blog post: Chrysler and GM Take Different Approaches to Dealer Arbitration], Chrysler now says that it will offer to reinstate 50 of the 789 dealerships it terminated last year.  The auto manufacturer also indicated that there may be more to come when, in a statement issued on March 26, it said ”discussions to find mutually beneficial alternatives to arbitration with other dealers are under way.”  For more on Chrysler’s changing arbitration posture, see CNN article dated March 3, 2010.

For more information, contact Stephen P. Lagoy.

By: Stephen P. Lagoy

Unlike GM, which has notified more than half of its terminated dealers that they will be offered reinstatement without going to arbitration, Chrysler has announced that dealer reinstatement will occur through arbitration, or not at all.  The key difference in the approaches of the two auto manufacturers may lie in the fact that Chrysler was in bankruptcy at the time it closed down the dealerships.  The present Chrysler Group is a new company which emerged from bankruptcy and never had a business relationship with the terminated dealers.  For more on Chrysler’s arbitration posture see this article on motortrend.com.

For an explanation of how the federally-mandated arbitration procedure works, see our earlier blog post  “GM and Chrysler Dealers Can Arbitrate“.

For more information, contact Stephen Lagoy.