Chrysler Wants Discretion in Reinstating Dealers

The cries for help, at times desperate and unjustified American manufacturer Chrysler made in 2009 over the size of its dealership network have ended. Many of the carmaker's dealerships have been scrapped, but a few managed to win the arbitration and received the right to get reinstated.

However, Chrysler is still unhappy with the way things turned out. In an attempt to control the reinstatement process, which looks more like stalling for time, Chrysler has asked a federal court for discretion in where to place reinstated dealers.

According to Autonews, Chrysler is asking this for 20 dealerships in Michigan, Ohio and four other states. Simply put, Chrysler admits the dealerships have won the right to get reinstated, but denies the fact that they have won the right to continue to operate in their former locations.

"Chrysler respectfully requests a declaration that the Act limits the arbitrator's power to the determination of whether or not the covered dealership should be added to the (OEM's) dealer network,” the carmaker argued.

The carmaker also says the dealerships will not be reopened until they meet state regulations and market conditions. This continuous cat and mouse game has, of course, displeased the representatives of the dealers, who claim Chrysler is making up rules on the go.

“It was a strange thing for Chrysler to do because a lot of this ruling is going to come down to how you view state franchise law, which is different in Michigan from these other states,” Robert Davis, lawyer representing two dealerships, was quoted as saying by Autonews.