Chrysler offers 50 dealers reinstatement (*Updated)

Update #2: Chrysler has officially announced it is offering Letters of Intent to 50 arbitrating dealers to join its dealer network as full-line representatives. These are dealers whose contracts were rejected as a part of OldCarCo’s bankruptcy proceedings last year. The 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network.

Update: It is now reported that 12 closed Chrysler Group dealerships were told by company representatives that they are to receive letters of intent beginning their reinstatement process.

In an abrupt change of company-policy, Chrysler made four dealers who had been previously terminated aware that they would be receiving letters of intent to begin their reinstatement process, according to the leader of a rejected dealers group. Just two weeks ago, the company said that it would not be reinstating any of the 400 dealerships that had signified their intent to arbitrate.

It is not exactly clear yet how many dealerships have been told that they would be receiving letters of intent, as Chrysler declined to confirm the news. Tamara Darvish, a co-leader of the Committee to Restore Dealer Rights, a group who lobbied on behalf of rejected GM and Chrylser dealers said that three separate dealerships had notified her of Chrysler’s getting in touch with them regarding their receipt of letters.

This comes in the wake of much pressure from Congress and the GM reinstatements. GM announced the reinstatement of 661 dealerships earlier this month; more than half of the dealers who had originally been cut by them. Out of the 789 closed Chrysler dealerships, less than 400 petitioned for reinstatement.

– By: Stephen Calogera

Source: Automotive News (Subscription Required)