Chrysler to reinstate 50 dealerships

Article by Christian Andrei, on August 29, 2010

After having been firm on its stand against rejected dealerships, Chrysler Group now offers to reinstate 50 stores. Chrysler said that it will soon begin settlement talks with a number of rejected dealerships and that 36 already have been reinstated nationwide.

However, Chrysler obviously still has a preference for dealerships that sell all four of its brands: Chrysler, Dodge, Jeep and the Ram truck brand.

All 50 of its reinstatement offers are for those who sell all four of the brands. Nonetheless, Chrysler continues to face problems that include claims from dealer lawyers that Chrysler has yet to revise its approach to arbitration.

For instance, Chrysler still demands that arbitrating dealers sign confidentiality agreements preventing them from sharing Chrysler information with other dealers. At least one dealer who received a reinstatement offer from the carmaker has said that he will take a wait-and-see attitude.

This unnamed dealer said that he is skeptical due to the company's previous lack of interest in taking back the dealerships.

A Chrysler spokesman said that the company would continue to explore "mutually beneficial options outside arbitration" to settle with dealers who have filed for arbitration.

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