Jump to content
Sign in to follow this  

Chrysler wins 70% of arbitration cases

Recommended Posts

Chrysler wins 70% of arbitration cases

29 locations accept dealership offers so far



Chrysler said arbitrators ruled in its favor in 70% of cases brought by dealers who sought reinstatement after the company cut them from its network.

The arbitration process has ended, and the company prevailed in 76 of 108 decisions, Chrysler said Monday on its Web site.

Under a law enacted in December, Chrysler was required to offer binding arbitration to dealers that were terminated in its bankruptcy reorganization.

"The decisions of a great majority of the arbitrators reflect the belief that the company's dealer network decisions were not only appropriate, but essential to its future success," the company said in a statement.

Of the 789 dealers terminated, 418 applied for arbitration, Mike Palese, a Chrysler spokesman, said.

The cases that didn't go to final arbitration were settled, dismissed, withdrawn or abandoned, he said.

Chrysler had 2,315 dealers as of June 30, and 29 previously rejected locations have accepted company offers to become dealers, Palese said.

He said more offer letters have been issued and declined to comment on how many outlets the company expects to add back.

"We're definitely within the network size that we're looking for," he said. Chrysler expects a total U.S. dealer network of 2,300 by the end of next year because of attrition and further consolidation, he said.



Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Who's Online   0 Members, 1 Anonymous, 25 Guests (See full list)

    There are no registered users currently online

About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets



Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.