Four Former Chrysler Dealerships Could Reopen Following US Appeals Court Ruling

Cameron Aubernon
by Cameron Aubernon
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four former chrysler dealerships could reopen following us appeals court ruling

After five years of fighting and a U.S. appeals court ruling, four former Chrysler dealerships could have a shot at opening their doors once more.

Automotive News reports three Detroit area dealerships — Livonia Chrysler Jeep Inc., Fox Hills Chrysler Jeep and Village Chrysler Jeep — and one based in Las Vegas — Jim Marsh Chrysler Jeep — could reopen after the 6th U.S. Circuit Court of Appeals found that a federal arbitration law allowing 789 dealers to fight against closure by Chrysler overruled state laws allowing local dealers to legally fight against nearby competitors from opening doors.

The court added the victory wasn’t an unconditional reinstatement, yet “should meaningfully facilitate incorporation of prevailing dealerships back into the network.” FCA US issued a statement praising the district court for its decision, and is reviewing legal options to take regarding the four dealerships.

Cameron Aubernon
Cameron Aubernon

Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.

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  • Omnifan Omnifan on Jan 21, 2015

    Yes, metro Detroit need more dealers advertising their impossible to figure out employee pricing deals (ultra low mileage lease on a 2 wheel drive Jeep) to the viewers of Detroit. Yikes!!

  • Polishdon Polishdon on Jan 21, 2015

    I personally know two of the dealerships (Livonia Chrysler and Fox Hills Chrysler). Livonia Chrysler (Livonia, MI) is now a Mitsubishi Dealership and also sells used white cargo vans (NO KIDDING!) They have billboards advertising their "Large Assortment" of cargo vans. Fox Hills (Plymouth, MI) has been closed and is for sale or lease. I think Dick Scott Dodge (which got the Chrysler/Jeep from Fox Hills) or the nearby Honda dealership is using their lots for overflow. So my question is this. If they win, now what? - Do they have to "rip" the Chrysler/jeep lines from the other dealer? - Would they get a Fiat/Alfa Romeo dealership instead? - Would they have to sue the "former" Chrysler Corp? If not, then who? I think this was all done before Fiat took over.

    • See 1 previous
    • Polishdon Polishdon on Jan 21, 2015

      @Wheeljack I dealt with Livonia Chrysler a few times in passing. I had several good experiences with Fox Hills though. Wouldn't deal with Dodge Dealer that took over for Fox Hills. Never had any comfortable feeling when I dealt with them.

  • Eggsalad Eggsalad on Jan 21, 2015

    Reporting in from Vegas here. Jim Marsh is left with a Kia dealership here. Even the $14k base Rio comes with a $2100 "Desert Protection Package" consisting of some spray-on stuff. I think they get their sales people by recruiting at the exit of Clark County Detention Center. Perfect for FCA.

  • Lorenzo Lorenzo on Jan 21, 2015

    It should be obvious they're not going to get FCA dealerships back, just cash for the owners. Otherwise, it would open up a can of worms with existing nearby dealerships. The cash could be a problem if the ruling can apply to others, but I would guess any settlements would be worded to make the owners happy and go away, and put some distance between the cash and the ruling, such as additional compensation for good will, anything but reparations for loss of the franchises.