Chrysler is doing better than GM. At least when it comes to winning arbitration cases brought by culled dealers. GM lost both cases brought against them. Chrysler bats much better.
Out of nine arbitration cases brought so far by eliminated dealers, Chrysler won 8, reports Automotive News [sub]. This week alone, Chrysler won three. The unlucky dealerships were Hinckley Dodge in Ogden, Utah, Tenafly Chrysler Jeep in Tenafly, N.J., and Midway Motors in Framingham, Mass. Out of the 9 cases that have been decided, Florida’s Deland Dodge was the only dealer to prevail.
After going bankrupt, Chrysler terminated 789 dealers last year. In December, law was passed to give any rejected dealers of Chrysler or GM the right to seek arbitration.
Chrysler reinstated 36 dealers and sent letters offering reinstatement to 50 more. Approximately 400 Chrysler dealers initially went for arbitration. That number dwindled to less than 250, as cases were withdrawn, dismissed, or settled.