Third Former Chrysler Dealer Wins Arbitration

Colleen McDonald of Northville won one arbitration case to reopen her Livonia Chrysler-Jeep dealership, but lost her bid to reopen Century Dodge in Taylor, the Detroit Free Press reported.

“It’s bittersweet,” McDonald said today after learning of arbitrator Tracy Allen’s split decision. “I am excited about winning one, but I though we could win both of them.”

McDonald becomes the third former Chrysler dealer to prevail through arbitration. The other two are Bill Hahn of Village Chrysler-Jeep in Royal Oak and Bruce Campbell, who plans to reopen his Dodge showroom in Redford Township.

The only woman owner of a Chrysler, Jeep or Dodge franchise in metro Detroit, was among the 789 dealers Chrysler terminated in June as part of its government-backed restructuring. She also had closed a Chevrolet dealership in Farmington Hills.

She said she employed about 125 people between her Chrysler-Jeep and Dodge businesses. Initially she plans to hire between 40 and 50 to reopen Livonia Chrysler-Jeep on Plymouth Road to get sales and service departments up and running.

Chrysler said that of 418 arbitration cases initiated, more than 125 were dismissed or withdrawn and 150 were settled. Of 97 arbitrators’ decisions rendered so far Chrysler prevailed in 69 cases, dealers won 28. Nine decisions are pending, including that of Joe Ricci, whose Dodge dealership in Dearborn has closed. Only one case has yet to be heard.

“The decisions of a great majority of the arbitrators validate that our dealer network plans are not only appropriate, but essential to Chrysler's future success,” the company said in a statement.

From 3,200 dealers before it filed for Chapter 11 bankruptcy on April 30, 2009, Chrysler now has 2,315 dealers, said spokesman Mike Palese. The automaker intends to have 2,300, each selling Chrysler, Dodge, Jeep and Ram truck models by the end of 2011.

The American Arbitration Association has said it wants to resolve all Chrysler dealer arbitrations by the end of July.