agent Entrepreneur logo
MenuMENU
SearchSEARCH

Dealers Split on Chrysler Offer

April 6, 2010
3 min to read


Automotive News - With just days left on Chrysler Group's offer to reinstate 50 closed stores, some dealers are pleased with the deal the company is offering; some are telling Chrysler to bag it. "Nobody in their right mind would agree to this," California dealer Richard Carpenter says of Chrysler's terms for costly improvements, and its demand for a five-year waiver on protesting new nearby points. In certain cases, dealers are pleased with the offers and intend to sign. "Half of my staff has been calling looking for jobs, and I have customers calling daily wanting to know if we're going back," said rejected New Orleans dealer Mike Comiskey. "I'd like to make a living again, and I think the brand can survive." Many dealers also are dismayed by the tight 10-day window for a decision on the offers, which began going out March 26. But a Chrysler source said the company is flexible and will talk to dealers who have questions and may need more time. Carpenter said the store upgrades Chrysler wants could cost as much as $3 million -- and says the company wants the job done in just eight months. In addition to saying no to Chrysler's offer, he's dropping his arbitration case, too. Harold Johnson, who now sells used cars in Wichita, Kan., said he spent half a million dollars a few years ago to upgrade his store and could save as much as $100,000 in arbitration expenses by signing -- which he plans to do. One Midwestern dealer said he is leaning against signing because the requirements of the letter he received aren't clear and he hasn't been able to get a clarification from Chrysler. The seven-page Chrysler letter also attaches a number of conditions that would make it easy for the company to wiggle out of the agreement, said the dealer, who asked not to be identified. The dealer said Chrysler made the offer while he was in the middle of selling parts back to the company for less than 30 cents on the dollar. If he were to sign, he would have to buy back the parts at full price, resulting in a loss of almost $100,000. Chrysler has said it is offering reinstatement to 50 closed showrooms that sold the Chrysler, Dodge and Jeep brands under one roof out of 387 that filed arbitration claims. Chrysler CEO Sergio Marchionne said in a speech last week that the 50 dealerships "are in locations that will benefit our customers but not have an adverse effect on existing partners in our network." Chrysler was closed for the holiday weekend on Friday, April 2. The company issued a statement on the process: "Chrysler Group offered standard letters of intent in the interest of finding a mutually agreeable alternative to arbitration. The dealerships involved filed for arbitration, signaling they wanted to join Chrysler Group's dealer network." Leonard Bellavia, a Mineola, N.Y., lawyer who represents dealers, said General Motors Co.'s letters of intent last month to 661 rejected dealerships "were more businesslike, more reasonable and less amorphous" than Chrysler's letters.

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...