Rejected dealers make progress with GM, still have a way to go with Chrysler
Dealers cut from the networks of Chrysler and GM have been championing for reinstatement for sometime now, as the Treasury was compelled to get involved with an audit some weeks ago. Chrysler, after two meetings, seems to be at a stalemate with their dealers, while GM on the other hand, has struck a common chord with their dealers, says Automotive News. More talks are scheduled for for Thursday and Friday however.
Chrysler, in closed talks at the Capitol on Friday, said that they plan on opening over 100 new dealerships in strategic market locations, though they declined to comment on the nature of the locations of such dealerships. In a circulated written proposal Chrysler said “Chrysler Group commits that it will not fill an applicable open point without first considering completed applications from rejected Old Carco dealers.”
The proposal also mentioned that dealers would have to submit previous business statistics and business plans outlining dealership staffing and management structures, as well as verification of adequate amounts of capital. Applicants would also have to submit a plan to provide a facility that meets Chrysler’s requirements. Chrysler affirmed their plan from early September to automatically reinstate any rejected dealer who meets or exceeds the company’s objective criteria, the dealer representatives say the proposal lacked both a provision for automatic reinstatement and an outline of objective criteria by which they would assess applicants.
General Motors on the other hand, ended their meeting on a high note, after a proposal by company lobbyist Kenneth Cole to allow the 1,350 dealerships targeted for elimination to submit appeals to the their mediation department.
Congressional leaders responsible for the talks, have expressed their desire to see the companies disclose the rejection criteria to the dealers and reinstate those dealers who did in fact meet them. Both companies have indicated their intentions to reject such criteria.
The talks were organized in hopes to prevent legislation that would reverse the termination of more than 2,100 dealerships. The legislation passed in the Senate last month and House leaders have indicated their intention to revive the legislation should the talks break down.
– By: Stephen Calogera
