agent Entrepreneur logo
MenuMENU
SearchSEARCH

Chrysler Wins First Case, Tries to Settle Others

May 3, 2010
2 min to read


WASHINGTON - Even before Chrysler Group learned on Friday that it had won its first dealer arbitration case, the automaker began offering cash settlements to some rejected dealers who are in arbitration. Chrysler is trying to reduce litigation expenses, reported Automotive News. Despite the small number of settlement offers reported by dealers, the step was another move away from the company's original hard line on arbitration. Four Chrysler dealer lawyers and a dealer activist said they know of about 18 closed dealerships that have received offers since Tuesday, April 27. Most of these offers have been for $25,000, with the range stretching from $20,000 to $200,000, they said. At least half the Chrysler dealers who received offers have rejected them, they say. In a statement, Chrysler said it is making the offers "in an effort to find mutually beneficial alternatives to dealer arbitrations, to reduce the costs of litigation and to protect the existing dealer network." The company added: "Resolving cases below anticipated litigation expenses makes good business sense." Chrysler declined to say how many settlement offers it has made or the amount of compensation offered. Mark Lyman, a Chicago lawyer who represents a rejected Chrysler dealership in arbitration, said it makes economic sense for the company to offer settlements. Chrysler's expenses for a single arbitration may exceed $100,000 when fees for lawyers and expert witnesses are taken into account, Lyman estimated. But Chrysler's offers fail to take into account dealers' perceptions of what their closed stores were worth, he said. "There's very little incentive for dealers at this stage to accept Chrysler's offers," Lyman said. "The only circumstance where it makes sense for a dealer is someone whose tolerance for arbitration has been exhausted. But I don't know any dealers who feel that way." In March, Chrysler offered to reinstate 50 closed dealerships out of the 387 that had filed for arbitration. In contrast, GM has offered to reinstate 666 of the 1,160 dealerships in arbitration -- while offering to discuss possible settlements with the remainder. GM's settlement offers have gone beyond compensation to include reinstatement hinging on dealership upgrades, store moves and sales goal achievement.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...