By on January 21, 2015

2015 Chrysler 200 S AWD front angle

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.

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9 Comments on “Four Former Chrysler Dealerships Could Reopen Following US Appeals Court Ruling...”

  • avatar
    SCE to AUX

    I’ll ask the obvious – five years on, does Detroit need 3 more FCA dealerships?

    • 0 avatar

      No. But the car dealers paid good money for state legislation exempting them from the same arbitration clauses that likely protect them in disputes with their own customers, and they are reaping the benefits.

  • avatar

    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!!

  • avatar

    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.

    • 0 avatar

      I’ve done some business with Livonia Chrysler and they were one of the good ones. I was sad to see them go considering some other terrible dealers in the area survived.

      • 0 avatar

        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.

  • avatar

    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.

  • avatar

    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.

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