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Rejected Dealers' Leader Wins Reinstatement

In what will surely be a sour blow for American manufacturer Chrysler, Jack Fitzgerald, one of the dealers' leaders in the fight against closures, has won his case in arbitrator court and will see his Chrysler dealerships reinstated.

Fitzgerald, the owner of several Chrysler and GM dealerships, was found by the arbitrator to be more of an asset than a liability for the carmaker.

“The interests of the public favor the reinstatement of a franchise agreement with the covered dealership in that the sales locality contains only two other competing dealerships," the decision, cited by Autonews, read.

On his end of the rope, 74-year-old Fitzgerald is glad a year-long struggle came to a happy end. He told the source that it was not the dealership, the sales figures or the arbitrator which won his case, but the consumers. His lawyer, John Forehand, however, was a bit more blunt, saying the "ruling goes to the heart of Chrysler’s cases.”

Obviously, Chrysler, who has until now lost six know cases, was disappointed in the decision and released their usual statement in such a case.

"This decision undermines the Federal Bankruptcy Court Order that affirmed the rationalization process used to reject the dealership agreements. While difficult, the actions to reduce Chrysler’s dealer network were a necessary part of Chrysler Group’s viability and central to the financing and partnership with Fiat. The only alternative would have been complete liquidation."

Yet, Chrysler is doing much better than its brother-into-bankruptcy, GM. The latter has, so far, zero known wins against the dealerships, vs. 4 loses. Yet, GM is more reluctant in advertising how the arbitration is going with its dealers.
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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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