P&A Providers & Administrators
MenuMENU
SearchSEARCH

Chrysler Offers to Reinstate 86 Closed Dealerships

March 27, 2010
2 min to read


Chrysler Group LLC is offering to reinstate 86 of the 789 dealers it shut down last year, the automaker confirmed Friday.


But how many actually resume business will depend on the terms, some dealers say.

Ad Loading...


Chrysler said "letters of intent" are being sent to 50 dealers who are appealing their terminations under a federal arbitration law, and who are in locations that need dealerships, The Detroit News reported.


The company previously notified 36 dealers whose franchises were eliminated last summer, offering to let them reopen if they meet certain requirements. All of those discussions have led to contracts.


The latest batch of 50 letters went to dealers among the roughly 400 that applied for arbitration to reverse their closings.


Many of the 36 dealers who already received letters, however, did not seek arbitration: Some agreements were reached before a law was enacted in December that gave dealers a route to appeal.


Recruitment in that group began shortly after Chrysler closed a quarter of its dealers in June as part of its restructuring while under bankruptcy protection.

Ad Loading...


The big question is what demands Chrysler has placed on the revival candidates, beyond the normal requirements: location, facilities and financing for inventory and working capital.


Those conditions weren't immediately known Friday. One stickler could be what is known as site control, where Chrysler can veto a dealer's sale of property for 30 years. That tactic would prevent a dealer from selling to a competitor, for example, said Tammy Darvish, a Chrysler dealer in Silver Spring, Md., and leader of the lobby group Committee to Restore Dealer Rights.



More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →