Chrysler sends 789 letters to rejected dealers, kicks off arbitration process

Pursuant to a bill recently passed by Congress, Chrysler Group has sent letters to 789 dealerships who had their franchise agreements pulled, notifying them of the new arbitration process that could potentially restore many of the dealerships. Dealers have until the 25th of January to notify Chrysler if they do in fact intend to seek arbitration.

The brass at Chrysler is none-too-pleased about the legislation, as CEO Sergio Marchionne said that the restoration of franchises could at the very least, cause much unrest in the organization.

The letters sent out did not outline the criteria used for the termination decisions; that information will be sent out by way of a mailed letter to each dealer before January 16.

– By: Stephen Calogera

Source: Automotive News (Subscription Required)