agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM, Chrysler Dealer Cases Differ

March 23, 2010
2 min to read


The first arbitration cases of terminated Chrysler and General Motors dealers are to begin next month, but the automakers are following starkly contrasting strategies to resolve the disputes, reported the Detroit Free Press. Both companies reduced their dealer networks as part of their government-backed bankruptcy restructurings last year. But late last year, Congress passed and President Barack Obama signed legislation allowing the rejected dealers to challenge the decisions through arbitration. Chrysler is moving aggressively, hiring high-powered national law firms, and it is not backing down from its plan to shrink its retail network by 25 percent or 789 dealers. Slightly less than 400 of those are pursuing arbitration to regain their Chrysler, Jeep or Dodge franchises, said Chrysler spokeswoman Kathy Graham. Using a more conciliatory approach, GM sent letters offering to reinstate 661 of 1,160 dealers who filed for arbitration after GM initially decided to wind down their businesses. Those who want to keep their showrooms open have 60 days to meet conditions and pass a credit audit by GMAC. But GM is continuing to talk with the 500 dealers that it didn't offer to reinstate and is open to some financial settlement in exchange for relinquishing their appeals. "We want to get this behind us and get back to what we do best -- selling cars and taking care of customers," said GM spokeswoman Ryndee Carney. Chrysler is convinced its turnaround requires a smaller dealer network.

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 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
Industry•by Hannah Mitchell•September 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 →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 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...