Chrysler could face disciplinary action for selling Los Angeles store

Article by Christian Andrei, on September 27, 2011

Chrysler Group still runs the risk of facing disciplinary action from the California Department of Motor Vehicles despite the fact that it has found a prospective buyer for its Motor Village LA factory store in downtown Los Angeles. The California New Car Dealers Association as well as the neighboring dealers has been opposing the factory store, which is a part of the company's plan to rebuild its dropping market share in California.

Motor Village LA opened in January as a high-visibility showcase for new retail techniques and for products of Chrysler, including Fiat.

It is in an 189,000-square-foot building with a glass vehicle display tower that overlooks Interstate 110. Last week, Chrysler revealed that it had inked a deal with New Century Automotive Group of the Los Angeles area to purchase the store.

The announcement came just eight days after the DMV filed administrative charges on September 14, accusing the company of improperly operating a factory-owned store at Motor Village LA.

The charges followed a complaint filed by the California New Car Dealers Association in March, alleging that the company was unfairly competing with its dealers by operating a factory-owned store within 10 miles of several other Chrysler dealerships.

New Century Automotive has a BMW-Mini store, an Infiniti dealership and three Volkswagen stores in the Los Angeles area. Chrysler hopes to close the deal in October. A meeting on the civil charges that the DMV has filed was set to take place on September 27 before the California New Motor Vehicle Board, which serves as a court to resolve vehicle franchise matters.

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