Chrysler’s terminated dealerships received settlement below $100k

Article by Christian A., on August 29, 2010

A Chrysler spokesman clarified that its settlements for terminated dealerships that filed arbitration claims average significantly below $100,000, and not $500,000 (according to The New York Times in its report last week). In an e-mail, spokesman Michael Palese stated that he wants to correct the newspaper's report that had cited people with direct knowledge of the terms.

Chrysler had been able to settle 151 of the 418 arbitration claims filed by shuttered dealerships as part of its bankruptcy proceeding last year.

Palese revealed that many of these settlements involved cash payments. He said that it makes good business sense when the company is able to settle a case for an amount that's considerably lower than the litigation costs. He said that this enables Chrysler to focus more resources into what's truly important -- developing outstanding products.

With these figures, it's calculated that Chrysler's overall costs for settlement payments are estimated at significantly below $15 million. However, Palese didn't provide specific details.

According to dealer lawyers, Chrysler started making settlement offers in April, typically for $25,000. The lawyers said that until July, those offers had increased as the arbitration process continued through July.

The lawyers said that they really weren't able to get near what General Motors typically offers. GM spokeswoman Ryndee Carney refused to talk about its average settlement or total settlement payments.

If you liked the article, share on:

Comments

Recommended

After the highly dynamic Polestar 1 two-door coupe – Polestar’s first ever production car -- was recently unveiled, not a few people’s curiosity was piqued as to how much they...
by - October 21, 2017
The BMW 7 Series is already highly sought after but nonetheless, the German marque is giving it a more exclusive variant for the Russian market, and they are calling it...
by - October 20, 2017
Several automakers including Porsche, Volkswagen, Smart and even Land Rover have all been victimized by cheap Chinese copycats. And if you haven’t seen it yet, the most recent one would...
by - October 20, 2017
The Mercedes-Benz G-Class has been around for quite some time now but to bid it farewell, the company has launched the Mercedes-AMG G65 Final Edition. Mercedes will only build a...
by - October 20, 2017
Have you ever wondered what you can you buy with $9,365 in your pocket? Well, you have quite a lot of options. In fact, you can even purchase a used...
by - October 20, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries