Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Dealers Split on Chrysler Offer

April 6, 2010
3 min to read


Automotive News - With just days left on Chrysler Group's offer to reinstate 50 closed stores, some dealers are pleased with the deal the company is offering; some are telling Chrysler to bag it.


"Nobody in their right mind would agree to this," California dealer Richard Carpenter says of Chrysler's terms for costly improvements, and its demand for a five-year waiver on protesting new nearby points.

Ad Loading...


In certain cases, dealers are pleased with the offers and intend to sign.


"Half of my staff has been calling looking for jobs, and I have customers calling daily wanting to know if we're going back," said rejected New Orleans dealer Mike Comiskey. "I'd like to make a living again, and I think the brand can survive."


Many dealers also are dismayed by the tight 10-day window for a decision on the offers, which began going out March 26. But a Chrysler source said the company is flexible and will talk to dealers who have questions and may need more time.


Carpenter said the store upgrades Chrysler wants could cost as much as $3 million -- and says the company wants the job done in just eight months. In addition to saying no to Chrysler's offer, he's dropping his arbitration case, too.


Harold Johnson, who now sells used cars in Wichita, Kan., said he spent half a million dollars a few years ago to upgrade his store and could save as much as $100,000 in arbitration expenses by signing -- which he plans to do.

Ad Loading...


One Midwestern dealer said he is leaning against signing because the requirements of the letter he received aren't clear and he hasn't been able to get a clarification from Chrysler.


The seven-page Chrysler letter also attaches a number of conditions that would make it easy for the company to wiggle out of the agreement, said the dealer, who asked not to be identified.


The dealer said Chrysler made the offer while he was in the middle of selling parts back to the company for less than 30 cents on the dollar. If he were to sign, he would have to buy back the parts at full price, resulting in a loss of almost $100,000.


Chrysler has said it is offering reinstatement to 50 closed showrooms that sold the Chrysler, Dodge and Jeep brands under one roof out of 387 that filed arbitration claims.


Chrysler CEO Sergio Marchionne said in a speech last week that the 50 dealerships "are in locations that will benefit our customers but not have an adverse effect on existing partners in our network."

Ad Loading...


Chrysler was closed for the holiday weekend on Friday, April 2. The company issued a statement on the process: "Chrysler Group offered standard letters of intent in the interest of finding a mutually agreeable alternative to arbitration. The dealerships involved filed for arbitration, signaling they wanted to join Chrysler Group's dealer network."


Leonard Bellavia, a Mineola, N.Y., lawyer who represents dealers, said General Motors Co.'s letters of intent last month to 661 rejected dealerships "were more businesslike, more reasonable and less amorphous" than Chrysler's letters.

More Industry

Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →
Bar graphic showing car segment activity for the previous week
Industryby StaffMarch 31, 2026

Black Book: Weekly Market Update

Last week's wholesale auction activity was stable, though buyers exercised selectivity as they focused on certain segments.

Read More →
Ad Loading...
gray background with white text that says Dealer Debrief 03/25/2026 with Lauren Lawrence. picture of a white woman (Lauren) with red hair
Industryby Lauren LawrenceMarch 25, 2026

Dealer Debrief: Safety, Supply & Partnership

In this week's Dealer Debrief, host Lauren Lawrence covers a new safety assessment, current inventory issues, and a new payables process for dealerships.

Read More →
Line chart depicting retail used-vehicle auction volume
Industryby StaffMarch 24, 2026

Black Book: Weekly Market Update

Both conversions and values were up last week, though business was spotty depending on the segment in question.

Read More →
red battery-electric vehicle using a Tesla Supercharging station
Industryby Lauren LawrenceMarch 24, 2026

Stellantis Expands Charging Network

Five of its brands now have greater access to battery-electric vehicle charging through Tesla’s Supercharger network across North America.

Read More →
Ad Loading...
blue subaru crosstrek in city with Save with SUVS text and Providers and Administrators logo
Industryby Lauren LawrenceMarch 17, 2026

Safety Drives Insurance Rates

Sixteen out of the 20 cheapest vehicles to insure in 2026 are SUVs, according to CarInsurance.com, largely because of their safety features and lower repair costs.

Read More →
Close-up photo of the front of a new-looking white car
Industryby Hannah MitchellMarch 17, 2026

New-Vehicle Shoppers Get Some Relief

Overall conditions in February tipped slightly in consumers’ favor as prices stayed high, granting a reprieve of sorts just before the war on Iran commenced and started to reverse the welcome trend.

Read More →
row of cars, used vehicle demand spikes, chart showing data spike, F&I and Showroom logo
Showroomby Lauren LawrenceMarch 11, 2026

Used Market Gains Speed

New-vehicle sales fell year-over-year for the fifth month in a row in February, making retail deliveries the slowest they’ve been since 2023, according to a CarGurus report.

Read More →
Ad Loading...
text reading Auto Loan Defaults Reach 2% on desk background with car keys, calculator, notepad, and toy car
Industryby Lauren LawrenceMarch 10, 2026

Auto Loan Defaults Measured Amid Inflation

According to LendingTree data, the average monthly auto loan payment was $540 in the fourth quarter, and the average credit score for those with a recorded default was 529.

Read More →