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Report: Chrysler to reinstate four rejected dealers

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Report: Chrysler to reinstate four rejected dealers

03/25/2010, 10:52 AMBY DREW JOHNSON

Following General Motors’ decision to reinstate 661 of its 1,160 rejected dealers, Chrysler has announced it will reinstate some of the 789 dealerships it shuttered during its bankruptcy proceedings. However, Chrysler’s reinstatements will be just a fraction of GM’s.

Chrysler originally stated that it had no intentions of reinstating rejected dealers, but apparently had a change of heart after receiving 400 files for arbitration. However, only a small portion of those dealers will be happy with Chrysler’s decision.

According to the latest reports out of Washington, Chrysler will reinstate just four of its rejected dealers. The Michigan automaker has yet to comment on the report, saying only: “Nothing new in our network has happened as of today.”

However, at least three of the rejected dealers have already been contact by Chrysler representatives. The three dealers are located in Florida and Ohio.

It remains to be seen if more than four Chrysler dealers will ultimately be reinstated, but it certainly remains possible. Chrysler’s deadline for arbitration is running low, and the Michigan automaker is facing pressure from a number of state representatives.



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