Chrysler says it won’t offer new dealer franchises in areas vacated by rejected dealers

Chrysler Dealership

Chrysler Group LLC has agreed to temporarily stop giving out new dealer franchises in areas vacated by rejected dealerships. Negotiators in the talks between the automakers and dealer groups said that Chrysler made the statement Wednesday in the first private negotiation with dealers and lawmakers. The Auburn Hills automakerΒ said its halt will last for the duration of the negotiations.

“We were encouraged by that,” said Alan Spitzer, an Ohio dealer who helps lead a group of rejected dealers called the Committee to Restore Dealer Rights. “It was a positive sign that they are at least willing to work with us and listen to us.”

“It’s good that they did that,” John McEleney, chairman of the National Automobile Dealers Association, told Automotive News. “It’s responsive.”

The negotiations are intended as alternative to legislation that would see the terminations of 789 Chrysler dealers and 1,350 General Motor Company dealers.

– By: Omar Rana