Chrysler will pay $955,000 to resolve the L.A. dealer complaint

Article by Christian A., on November 21, 2011

To resolve a complaint from the California Department of Motor Vehicles for unfair competition, Chrysler Group has sold the store and agreed to pay $955,000. It has been less than a year since Chrysler opened a showcase factory-owned dealership in Los Angeles for Fiat and other brands. The issue was that this factory store is less than 10 miles from other Chrysler dealerships.

The California DMV last September filed an administrative action against Chrysler’s occupational licenses. Under the administrative settlement, Chrysler entered a deal to pay $750,000 in penalties and fines to the DMV.

It also agreed to pay $160,000 in reimbursements of investigation and legal fees, and as much as $45,000 for post-settlement audits. Chrysler confirmed that the sale of the high-profile, 189,000-square-foot dealership to New Century Automotive Group of Los Angeles had been completed at the end of October. The terms of the sale were not revealed.

The facility was issued two new dealer licenses: Downtown Figueroa Motors LLC, doing business as Motor Village L.A., and Downtown Apex Motors LLC, doing business as Fiat of L.A.

These two companies name New Century owner Dennis Lin as the business principal. Peter Grady, Chrysler vice president of network development and fleet, released a statement, revealing that the company was searching for a dealer that could continue with its plan for Motor Village to be a showcase for its brands.

The company also wanted a dealer “committed to experimenting with new retail techniques and heightened levels of customer care.” He added that Motor Village was quick to tell the company about its intentions in Los Angeles and state of California, and that it will continue to be under Lin’s private ownership. [source: Autonews]

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