Dealer Arbitration Approved

A piece of legislation allowing dealers affected by closure this year to appeal their terminations was presented yesterday in the US. The arbitration will be funded through a $447 billion year-end spending plan.

The plan will allow for a binding arbitration process for dealers, in an attempt to determine if they should be reinstated, Bloomberg reported. The only ones who aren't eligible for the review process are the dealers of terminated brands.

The National Automobile Dealers Association (NADA), together with the Automotive Trade Association Executives (ATAE) yesterday expressed their support for the compromise agreed in between the House and Senate leaders. According to the two organizations, the compromise would give dealers a fair process to address their concerns regarding their closure.

"The compromise agreement will give affected dealers transparency and the right to arbitrate to regain their dealerships. The arbitrator will balance the interests of the dealer, the manufacturer and the public to reach a decision about whether the dealer should be added to the dealer network," NADA said in a release.

The two American manufacturers whose dealers are affected by the closures, GM and Chrysler, also expressed their support for arbitration. Chrysler even released a statement clarifying its position.

"We agree with Congress that arbitration is the best way to resolve the issues involving discontinued dealers. We are committed to work with Congress and the dealers to achieve a process that equitably balances the interests of the discontinued dealers, our current dealers, and the taxpayers relying on Chrysler to repay its loans."
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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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