Chrysler Signals it Won't Follow GM on Dealer Reinstatement

WASHINGTON - Chrysler Group, reacting to General Motors Co.'s plans to reinstate 661 rejected dealerships, is signaling that it will not follow suit while noting that the number of arbitration claims involving its former dealers has fallen 5 percent.

“Dealer appointments will be a function of the arbitrations,” Chrysler said in an e-mail yesterday to Automotive News. “The company looks forward to the expeditious completion of the arbitration process.”

As of late January, 418 of the 789 shuttered Chrysler dealerships had paid $1,625 apiece to give notice of their intent to arbitrate, the company said. That number has fallen to below 400 after some dealerships changed their minds, Chrysler said.

On Friday, GM said it plans to reinstate 661 of the 1,160 dealerships that had filed arbitration claims. A total of 2,000 were targeted to lose one or more franchises by October.

Asked whether reinstatements would be possible at Chrysler, a source close to the company said GM's rejected dealers are still in business -- meaning they have contracts to sell cars -- while Chrysler's are not.