Chrysler will reinstate 50 already closed dealerships

 

Chrysler will reinstate 50 already closed dealerships

WASHINGTON -- Chrysler Group, reversing an earlier stance, said today it will offer to reinstate 50 closed dealerships within the next few days.

Letters of intent will be sent to 50 of the estimated 400 rejected dealerships that have applied to get their franchises back through arbitration, Chrysler said in a statement.

They “are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network,” Chrysler said.

No letters of intent have been sent yet, Chrysler said. Each of the dealerships that stand to be reinstated would house all four Chrysler brands under one roof.

In the statement, Chrysler also revealed that it already has awarded contracts and or sales or service agreements to 36 other closed dealerships since July based on individual circumstances.

The company also said it is entering settlement talks with an unspecified number of shuttered showrooms.

The disclosures show Chrysler has reinstated or is trying to reinstate 86 dealerships, or 11 percent of the 789 dealerships that were closed in June as part of its bankruptcy.

The company signaled as recently as two weeks ago that it had no plans to reinstate any of the 400 or so dealerships that have given notice of their intent to seek arbitration.

GM's status

Earlier this month, General Motors Co. said it plans to reinstate 661 of its 1,160 rejected dealerships that have filed for arbitration.

GM has mailed nearly all of its letters of intent, which list requirements that dealers are expected to meet -- including facility size, location, capital and floorplan financing.

GM is giving dealers 10 days to sign and mail them, and then 60 days to provide documentation.

Under a new federal law, arbitrations must be completed by June 14, though they can be extended a month at an arbitrator's discretion.

Source: [ Automotive News ]