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Chrysler Dealer Wins Arbitration

As the arbitration process for Chrysler's 2009 rejected dealers continues, the first win for the dealers was recorded in Florida yesterday. Deland Dodge was reinstated as a result, after a hearing which considered the cases of three local dealers simultaneously. The other two cases were rejected.

"We're very happy Deland won and very upset the other two lost," Mark Orenstein, the attorney for the three dealers said according to Autonews. “After reading the arbitrator's decisions, I still don't think I have a clear impression of the exact reasons she ruled for Deland and did not rule for Venice and Bob Taylor.”

As was to be expected, the decision in Deland's case didn't sit well with Chrysler. While saying it is pleased with how things went in general, Chrysler says it is disappointed about losing a case and even threw in an accusation.

"This decision undermines the federal Bankruptcy Court order that affirmed the rationalization process used to reject this dealership agreement,” Chrysler said in a statement. The company not only employed sound business judgment but is acting in the greater public interest by protecting the dealer network that was created as a result of the bankruptcy proceedings."

Chrysler rejected last year 789 dealers, leaving it at the time with a network comprising 2,385 showrooms, 1,364 of which in rural communities, 592 in Metro areas and 429 in secondary markets.

The carmaker revived 50 of them in March this year, based on criteria such as the benefits they have to offer to customers or the fact that they are located in areas where no other Chrysler dealers are located.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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