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Friday, 30 April 2010 23:48

Chrysler wins first arbitration case against a rejected dealer

Automotive News has reported that Chrysler Group has won the first arbitration case over an Ohio dealership that was seeking reinstatement without legal representation.

The arbitrator affirmed Chrysler's Genesis plan to put all four brands in one dealership, said Tom James, general manager of the former Joe Kidd Dodge in Cincinnati.

“The covered manufacturer will have the Cincinnati marketplace arranged in a way that more closely coincides with its current plan to implement Genesis,” the arbitrator wrote in a six-page decision, James said in an interview.

Joe Kidd Dodge's franchise was terminated as part of Chrysler's bankruptcy proceeding last year. Chrysler awarded the franchise to a nearby dealership that now has all four Chrysler brands.

The decision was eagerly awaited by dealers, their lawyers, Chrysler and GM because it is the first of 678 arbitration rulings due to be handed down by the end of July.

James, 51, said he was told by the American Arbitration Association that he was prohibited from releasing a copy of the decision.

Chrysler also declined to provide it.

 

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