Livonia Chrysler Jeep Inc, a Metro Detroit dealership that was reinstated after arbitration proceedings with Chrysler in July has now decided to sue the company, claiming a loss of rights under franchise law. The dispute centers around nearby Crestwood Dodge, which was given a Chrysler-Jeep franchise after Livonia’s was terminated and did not have one before. The suit has also been filed against Crestwood Dodge.
Colleen MacDonald, who owns Livonia Chrysler, says that the automaker’s letter of intent, dated August 12, does not return the sales and service agreement that it gave to Crestwood Dodge, after Livonia’s termination and that the law requires Chrysler to reinstate the Livonia dealership to the same position it was prior to the franchise agreement being terminated. MacDonald has decided to interpret the “same position” statement as one whereby her dealership is the only Chrysler-Jeep dealer in the area – which is no longer the case.
MacDonald also operated another Chrysler Dealership; Century Dodge based in Taylor; Michigan, but lost a bid to have that franchise reinstated.
[Source: Automotive News]