Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Chrysler Reaches Settlement to Block N.C. Dealer Law

April 20, 2010
2 min to read


WASHINGTON - Chrysler Group says it reached a settlement last week that blocks a North Carolina law aimed at making it easier for rejected dealerships to win reinstatement and will continue cases over similar laws in Illinois, Oregon and Maine, Automotive News reported.


The North Carolina law, passed in August, gave closed dealerships the right of first refusal on any new franchise that was to be awarded in the store's former market. Exceptions were to be granted if Chrysler paid the dealerships for the value of their franchises or demonstrated that they were unfit to be dealers.

Ad Loading...


Chrysler said that North Carolina authorities agreed on April 15 not to enforce the state law and that the settlement was approved by the U.S. Bankruptcy Court in New York on the same day.


“Chrysler Group not only employed sound business judgment in restructuring its dealer network but is acting in the greater public interest by protecting the dealer network that was created during bankruptcy,” the company said in a statement.


The 13 Chrysler dealerships in North Carolina that were closed last June as part of the company's bankruptcy restructuring can try to win reinstatement through arbitration, the company said.


A North Carolina Department of Transportation spokeswoman declined comment.


In December, Chrysler asked the U.S. Bankruptcy Court to declare that new laws in Illinois, North Carolina, Oregon and Maine “are in conflict with and therefore are pre-empted by” the federal bankruptcy code.

Ad Loading...


The company said today it will continue to try to block implementation of the laws in Illinois, Oregon and Maine.


Those three states have a total of 56 closed Chrysler dealerships, the company said.


A fifth state, Colorado, enacted a law last month that requires automakers to reinstate rejected dealerships or compensate them if the store wasn't offered the franchise back before it was awarded to another dealership in the same market.


The company declined to say whether it would sue to block the Colorado law.


“We oppose the Colorado legislation and continue to consider our options,” Chrysler said today.

Ad Loading...


Chrysler closed 789, or a quarter, of its dealerships as part of its bankruptcy last year. About half the closed stores have sought reinstatement through arbitration under a new federal law enacted in December.


The company has offered reinstatement outside the arbitration framework to about 50 of the shuttered dealerships.

More Industry

Showroomby Lauren LawrenceMarch 4, 2026

Used-Vehicle Program Aims to Draw More Buyers

GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.

Read More →
Industryby Hannah MitchellMarch 3, 2026

Auto Dealers Cautiously Hopeful

Though traffic and profits were down in the first quarter, normally optimistic franchisees and independents saw dim current conditions while holding out visions of healthy spring sales.

Read More →
Industryby StaffMarch 3, 2026

Black Book: Weekly Market Update

Conversions picked up last week at wholesale vehicle auctions, according to the market observer, as the spring shopping season appeared to begin.

Read More →
Ad Loading...
white Audi car in a service bay
Industryby Lauren LawrenceMarch 3, 2026

Recall Service Reaches Milestone

Eight state DMVs participate in the Vehicle Recall Search Service created by Carfax and the Alliance for Automotive Innovation to reduce the number of unaddressed vehicle recall repairs.

Read More →
Industryby Hannah MitchellMarch 2, 2026

Meet the Editor: Hannah Mitchell

A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.

Read More →
Summit Updatesby StaffMarch 2, 2026

Enhance Your Dealer's F&I Workflow at Agent Summit

This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.

Read More →
Ad Loading...
Industryby Hannah MitchellMarch 2, 2026

Auto Brands Hold the Line on Retention

A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.

Read More →
Industryby Lauren LawrenceFebruary 25, 2026

Report Finds Year-End F&I Strength

Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.

Read More →
Industryby Lauren LawrenceFebruary 24, 2026

China Leads Battery Production

Between 2020 and 2025, gigafactory capacity grew six-fold and is set to grow another 118% by 2030, according Benchmark data.

Read More →
Ad Loading...
Industryby Hannah MitchellFebruary 24, 2026

Overall Consumer Confidence Up

Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.

Read More →