In an announcement made last Friday, Chrysler Group LLC is reinstating 50 of its 789 terminated U.S. dealerships in an effort to increase sales and avoid costly arbitration with affected dealers.
“The 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network,” Chrysler said in a company statement.
Chrysler did not identify which dealerships were notified to be reinstated, but all 50 were among the 418 that appealed in arbitration. Earlier, the Auburn Hills, Mich.-based automaker had invited 36 other dealerships back, bringing the total reinstated dealerships to 86. The company has not begun notifying dealership yet.
In a statement, the National Automobile Dealership Association called the move “A good faith effort,” and that is “hopes that this carries forward in Chrysler’s continuing settlement and arbitration discussions with the other terminated dealers.”
One of the reasons for reinstating dealerships is to stem Chrysler’s market share losses in recent years. The company’s U.S. market share was only 8.9 percent last year, more than 2 percent lower than in 2008.
Earlier this month, rival General Motors Co. invited 661 dealerships back into its sales network. The difference lies in that Chrysler has already closed all of its terminated dealers, while GM had not yet closed the dealerships when the reinstatement announcement was made.
“The 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network,” Chrysler said in a company statement.
Chrysler did not identify which dealerships were notified to be reinstated, but all 50 were among the 418 that appealed in arbitration. Earlier, the Auburn Hills, Mich.-based automaker had invited 36 other dealerships back, bringing the total reinstated dealerships to 86. The company has not begun notifying dealership yet.
In a statement, the National Automobile Dealership Association called the move “A good faith effort,” and that is “hopes that this carries forward in Chrysler’s continuing settlement and arbitration discussions with the other terminated dealers.”
One of the reasons for reinstating dealerships is to stem Chrysler’s market share losses in recent years. The company’s U.S. market share was only 8.9 percent last year, more than 2 percent lower than in 2008.
Earlier this month, rival General Motors Co. invited 661 dealerships back into its sales network. The difference lies in that Chrysler has already closed all of its terminated dealers, while GM had not yet closed the dealerships when the reinstatement announcement was made.
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