Chrysler May Offer to Restore Some Outlets, Dealer Group Says

Chrysler Group LLC, the U.S. automaker run by Fiat SpA, may offer reinstatement to some of its terminated dealers, said Tammy Darvish, the co-chairwoman of a dealership organization lobbying for the restoration, Bloomberg reported.

Fifteen to 20 dealers contacted Darvish in the past day telling her that Chrysler officials had called to say offers would be sent to reinstate franchises, said Darvish, a leader of the Committee to Restore Dealer Rights.

The offer of reinstatement would follow a General Motors Co. decision this month to bring back 661 dealers that it had planned to cut. Both companies are facing U.S.-ordered binding arbitration cases with dealers that ask for an appeal.

Chrysler terminated 789 dealers last year in its bankruptcy. President Barack Obama signed a law in December allowing terminated dealers to be granted binding arbitration to seek to have their dealership restored. Chrysler said in January 409 dealers had applied for arbitration.

Gualberto Ranieri, a Chrysler spokesman, declined to comment.

The Detroit Free Press reported earlier that as many as 96 dealers may be reinstated, citing unnamed sources with knowledge of the situation.

Darvish, a principal of Darcars Automotive Group in Silver Spring, Md., had two Chrysler dealerships terminated. She wasn’t contacted by the company, she said.