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Dealership News: More than 1,550 Rejected Car Dealers Fight Back

Posted in auto industry, Newsworthy by UDMan | January 27th, 2010 | Leave a Reply |

More than half of the dealers terminated by General Motors and Chrysler last year have filed to have an arbitrator determine whether they should be reinstated. The American Arbitration Association, charged by Congress to oversee the process, said it had received paperwork from 1,550 dealers as of Tuesday morning. The deadline to file was Monday, but it looks like this number will grow because of the flood of applications received at the last minute.

There were around 2,800 dealers that were eligible to file for arbitration under a law passed last month. That figure includes the 789 Chrysler dealers that were forced to shut down last June and 1,300 G.M. dealers that will lose their franchise by October. An additional 700 G.M. dealers are losing the ability to sell one or more brands but remain with the company.

G.M. and Chrysler made the cuts as part of their bankruptcy reorganization plans. The companies said the terminations were needed to eliminate poor-performing stores and help make those that remain more profitable.

Source: The New York Times

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