Suzuki May Finally Climb Out From Under VW
Hedge fund investor Daniel Loeb has purchased a minority stake in Suzuki Motor Corp., which may mean the automaker could have a ruling on its nearly 5-year arbitration with Volkswagen, Bloomberg Business is reporting.
The unspecified investment in Suzuki by the billionaire Loeb, who is one of Japan’s wealthy business elite, could be a sign that a ruling following June’s completion of arbitration is imminent. For years, Suzuki remained “paralyzed” as the procedure slogged on.
Suzuki has a significant automotive presence in emerging markets and India.
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.
Chrysler Dealers Who Regained Their Franchises Back To Square One
C hrysler dealers who were terminated and then re-instated have been left out in the cold, after a federal judge ruled that the Federal Appropriations Act, a 2010 law that opened the door for dealers to regain their franchises via arbitration, did not overrule state dealer laws that deal with dealer markets.
Chrysler 8, Dealers 1
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.
Colorado Senate Approves $25k/Day Fines For Dealer Reinstatement Law
The Denver Business Journal reports that the Colorado Senate has approved fines of $10,000-$25,000 per day for any automaker that does not comply with its law (HB-1049) requiring reinstatement or compensation of culled dealers. That law was passed earlier this year, drawing a $60,000 vote-no lobbying effort from GM. It also gives culled dealers the right of first refusal for new franchises opened within five miles of their shut dealership within five years, and states that if a franchise has been re-awarded, the culled dealer can demand the return of his franchise. According to the DBJ:
Three terminated Chrysler dealers requested their re-awarded franchises back after the law was signed and said they were told by the company that it had no intentions of complying with it. Chrysler then filed a federal lawsuit on April 23 against Colorado, claiming the new law contradicted terms laid out in Chrysler’s bankruptcy agreement and violates the contract clauses in the state and federal constitutions.
1,550 Culled Dealers Filed For Arbitration
Culled Dealers: Today Is The Last Day To Stick It To GM and Chrysler
Quote Of The Day: Chry The Beloved Automaker Edition
Chrysler may file a suit challenging the congressionally mandated dealer cull arbitration, reveals CEO Sergio Marchionne to Automotive News [sub].Why? Because it’s just not fair that dealers pressured congress to give them a fair shake. Wounded by the arbitrary backlash against his arbitrary cull, Marchionne threw his head back and cried unto the heavens:
Ask me what fairness is involved in all this. Why doesn’t anyone ask what’s fair to Chrysler?