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The AutoGuide News Blog is your source for breaking stories from the auto industry. Delivering news immediately, the AutoGuide Blog is constantly updated with the latest information, photos and video from manufacturers, auto shows, the aftermarket and professional racing.
 |  Jul 23 2012, 7:02 PM

A swath of GM dealers chose to bet the farm in the hope of keeping their franchises amid the automaker’s massive 2009 restructuring, but that decision is turning out to be a bad one for at least eight locations.

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 |  Mar 28 2012, 5:03 PM

More than 20 former Chrysler dealerships in Michigan, Wisconsin, California, Ohio, Nevada, and Florida may not reopen even though they have regained their franchise agreements.

On Tuesday, Judge Sean Cox of U.S. District Court in Detroit ruled that the federal Consolidated Appropriations Act of 2010 does not trump previous state laws governing dealer markets. In other words, former Chrysler Group LLC dealers who lost their franchise agreements and regained them in federal arbitration aren’t guaranteed the right to reopen.

Simply put, those dealerships will be treated as if they are starting a brand new business and may not be able to enter the market if another dealer offers the same brand of cars within the area. Those returning dealers also do not have the right to seek a court order and aren’t able to seek financial damages from Chrysler.

“Congress intended to provide dealers that had been rejected by old Chrysler an opportunity to be added to new Chrysler’s dealer network by means of a letter of intent to enter into a sales and service agreement,” Cox’s ruling states.

As part of its reorganization in 2009, Chrysler closed 789 of its 3,200 dealerships. 418 of those brought claims in federal arbitration, but Chrysler had resolved 310 of them in short of a hearing.

[Source: Automotive News]

 |  Feb 25 2011, 6:00 PM

Although Chrysler initially planned for an ambitious 165 dealer roll-out for their Fiat brand, so far only 12 dealers nationwide are operational, 8 more expected by the end of the week.

Fiat said in September, 2010 that it wanted to see their dealerships open by the end of February, but only 30 to 40 franchises will have their facilities open by mid-March. At this rate, 130 of the dealerships should be running by September, 2011. With that said, dealers are only expected to get their inventory sometime towards the end of March. Fiat USA head Laura Soave stated that Fiat was “…a tiny bit behind schedule”, and we applaud her diplomatic way of framing the issue.

[Source: Automotive News]

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