WASHINGTON - Chrysler Group, after congressional pressure and complaints from rejected dealers, said it will stop awarding new franchises temporarily in the markets of closed dealerships that are pursuing arbitration, Automotive News reported. “Chrysler Group understands that the practice at this time may be a cause of concern among policymakers and among arbitrating dealers,” the automaker said in a statement. “As a measure of good faith, Chrysler Group will not proceed with network actions that directly impact an arbitrating dealer until the arbitrator has had a chance to rule in that case.” Chrysler said the only exception would be if the company is “contractually obligated” to award a new franchise. Rep. Pete Hoekstra, R-Mich., and Steven LaTourette, R-Ohio, asked Chrysler this month to stop the practice. They said shuttered dealerships could win reinstatement from an arbitrator but be prevented from reopening because a new franchise already had been awarded in that market. Some rejected dealers also have complained about Chrysler's new franchise awards in recent weeks. The moratorium on new franchise awards is Chrysler's second in recent months.
Chrysler Halts Franchise Awards in Rejected Dealers' Backyards
More Industry
Senators Propose Chinese Connected Car Ban
Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.
Read More →
Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Read More →
Bad Credit Tanks Attainability
A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.
Read More →
A New Consumer Culture in the Auto Dealership
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
New-Vehicle Sales Down
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
Will Extended-Range Autos Make Inroads?
EREVs, also known as ‘series hybrids,’ may catch on in the U.S., where they currently have barely a toehold, as automakers tilt away from some purely electric models and consumers crave more range.
Read More →
Used Autos Selling for More
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →
Maryland Auto Group Sells
A group out West picked up the major D.C.-area collection, putting it in the upper tiers of private automotive groups in the U.S.
Read More →
Auto Lending Opens Up in March
Lenders loosened access for subprime borrowers, and consumers with negative equity reached a record high, Cox Automotive reported.
Read More →
EV Interest Varies Regionally
U.S. consumer interest in electric vehicles lags behind other countries despite the rising gas prices caused by the ongoing war in the Middle East.
Read More →