Chrysler Approves Closed Dealerships Reviews

As a result of the discussions with Senate Majority Whip Richard Durbin, House Majority Leader Steny Hoyer and their staffs, Chrysler Group LLC will make an effort to settle issues regarding discontinued dealerships amicably. Basically Chrysler agreed to provide independent reviews for discontinued dealers. The process will be implemented today.

As you might recall, Chrysler’s bankruptcy meant that a lot of its dealers had to close business. Considering the situation at that time, Chrysler found itself powerless to help its dealers. Helping them was very important, as Michael Bernstein, lawyer with Arnold & Porter said it the best: "The dealers are nearly the only source for revenue that Chrysler has."

The fundamental elements of the appeal process approved today include the following:
  • Provide each discontinued dealer the general criteria and standards used by the former Chrysler LLC in making its rejection decisions and the specific criteria considered and applied to the individual discontinued dealer's circumstances
  • Offer of a meeting with the discontinued dealer's former Business Center to discuss the criteria, and ability for the dealer to present information to refute the rejection decision
  • Right to call for a binding independent review if dealer believes its rejection was not warranted. Chrysler will abide by the decision of the independent review panel
  • Two opportunities to join the new dealer network if the panel rules in the discontinued dealer's favor: first, to join the new network as a Genesis (Chrysler, Jeep and Dodge) dealer in the previous market area or, if that is not possible, to be offered an opportunity to open a Genesis dealership in another market area from a list of available market areas

Chrysler will mail a detailed letter before December, 10 to the 789 dealers and the process will begin at that time. In order to provide a soft landing, Chrysler’s efforts will include:
  • Chrysler has successfully found buyers for 100 percent of the discontinued dealers' outstanding eligible new vehicle inventory
  • On November 9, 2009, Chrysler notified the 789 rejected dealers, per our commitment in June, that if they desire, the company would repurchase eligible parts inventory at $0.68 on the dollar, which was the average transaction price for eligible parts sold among dealers between June 9 and September 10, 2009. Dealers received the information in both email and letter form
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