Chrysler Wins Two More Arbitration Cases

Except for a single case, American manufacturer Chrysler won all the arbitration hearings held so far in the US. Yesterday, two more dealers joined those rejected, after the carmaker had its way against Manuel Dodge of Richardson and El Dorado Motors of McKinney.

"Chrysler's new business model, and the existence of a high-volume, full-line dealership at this high-volume location, would bring more products to the surrounding community and to customers encountering the store at lower prices than would be available under Manuel Dodge's business model,” the arbitrator wrote according to Autonews, citing a Chrysler spokesman and Manuel Dodge's attorney.

“Further, while Chrysler would have the authority to make Manuel Dodge a full-time dealer were it to be offered a letter of intent as a result of this proceeding, there is no indication that the dealership would be willing to change its sales style to more closely align its business model with Chrysler's preferred model going forward."

The decisions made by the arbitrator, based on Chrysler's Project Genesis strategy, was disputed by Manuel Dodge's attorney, George Haratsis. For those who don't know yet, Project Genesis calls for Chrysler's dealers to offer all the carmaker's four brands under one roof. Both Texas dealers only sell Dodge.

“This completely ignores Congress' intent that a single-line dealer is eligible to be restored to Chrysler's dealer network,” Haratsis said. “If other arbitrators accept Chrysler's position, partial-line dealers will have little chance of success in arbitration," the attorney said.