Chrysler Revives 50 Dealers

After back in 2009, during the bankruptcy process, American manufacturer Chrysler tried to shed as many of its "uncompetitive" dealers as possible, 2010 brings hope back to some of those dealers. In a move dubbed by Chrysler "mutually beneficial," the carmaker announced it has sent letters of intent to 50 of the dealers rejected last year.

 "In an effort to find a mutually beneficial resolution in situations that make sense for the customer, the dealer and the company, Chrysler Group LLC today announced it is offering Letters of Intent to 50 arbitrating dealers to join its dealer network as full-line representatives." 

"These are dealers whose contracts were rejected as a part of OldCarCo's bankruptcy proceedings last year." the carmaker says in a release.

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 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network. Discussions to find mutually beneficial alternatives to arbitration with other dealers are under way," Chrysler continued.

In December last year, as a result of the discussions with Senate Majority Whip Richard Durbin, House Majority Leader Steny Hoyer and their staffs, Chrysler said it will make an effort to settle issues regarding discontinued dealerships amicably.

The 50 dealers who received the food news come to complete the other 36 who received letters of Intent and/or Sales and Service Agreements in the past..