"Chrysler Group is pleased the arbitrator agreed with the difficult dealer decisions made during the bankruptcy proceedings. This was an important decision in that the arbitrator essentially decided that no dealer in the market is better than diluting Chrysler Group's dealer network with a poor performing dealer," Chrysler says in a statement.
"There is no denying that Chrysler Group’s and the public’s economic interests are inextricably linked. Chrysler Group 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."
"We are confident we now have the dealer network in place that allows dealers to be successful, which will result in greater investment in their communities, employees and customers and, ultimately will enable the company to repay the U.S. Taxpayers in a timely manner."
So far, the fight for dealer reinstatement is clearly going the Chrysler way. Only one dealer, Deland Dodge of Florida, managed to prevail. The decision was harshly criticized by the manufacturer, who said the decision "undermines the federal Bankruptcy Court order that affirmed the rationalization process used to reject this dealership agreement.”
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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