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.