Chrysler will proceed with arbitration in the cases of 789 dealerships
By Andrew C., 30 Aug, 2010. 0 Comments
Chrysler Group will proceed with arbitration in the cases of 789 dealerships it cut during bankruptcy last spring and is looking forward to the ‚Äúexpeditious completion of the process,‚Äù according to the carmaker‚ statement.
As of Thursday, 409 former Chrysler dealers had filed for arbitration. The statement said, “A robust dealer network is a critical component of the group's strategy of rebuilding a strong and resilient American automaker.” Continued after the jump!
At the Detroit Auto Show this month, CEO Sergio Marchionne had said he was thinking about challenging the process on constitutional grounds. That is why this announcement comes as a surprise.
When Chrysler went into bankruptcy, it cut 789 dealers, a move sanctioned by Judge Arthur Gonzalez of U.S. Bankruptcy Court in New York. Pressured by rejected Chrysler and General Motors Co. dealers, Congress passed a bill allowing dealers to appeal their franchise terminations through arbitration. President Barack Obama signed the bill into law in late December.
House Majority Leader Steny Hoyer, D-Md., applauded Chrysler's decision. He released a statement: "Chrysler is affirming its commitment to a strong dealer network that keeps Americans on the job and gives its products the best chance at success so the company can return to profitability."
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