Summary Box: Chrysler to reinstate 50 more of the 789 dealers who lost franchises last year
By APFriday, March 26, 2010
Summary Box: Chrysler to reinstate 50 dealers
THE DECISION: Chrysler Group LLC will restore franchises to 50 dealers who were dropped by the company last June. The 50 are among 789 dealers cut loose as Chrysler tried to thin the ranks to make the remaining dealers healthier.
THE REASON: The 50 are among 418 dealers who appealed Chrysler’s decision under a new federal law requiring arbitration. Congress passed the law after dealers claimed their businesses were taken unfairly. Chrysler says the restored dealers are in markets where there are no competing Chrysler dealers.
THE NEXT STEP: Dealers will be notified by letter. Chrysler also is in negotiations with other dealers who have appealed and could reinstate more of them.
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