Rejected Dealer Arbitration Filings Reach 1,550; Cases Set to Begin
WASHINGTON - Dealerships filed about 1,550 notices of their intent to seek arbitration as of yesterday's midnight deadline, setting the stage for proceedings to begin with the case-by-case selection of arbitrators, Automotive News reported.
As many as 50 more submissions may be counted by the end of the week, an American Arbitration Association official said today. It's also possible that some duplicate filings could lower the total a bit, said association Senior Vice President India Johnson.
The tentative tally accounts for well over half the 2,789 rejected General Motors Co. and Chrysler Group dealerships eligible to seek reinstatement through neutral arbitration under legislation signed by President Barack Obama last month.
The filings, which cost dealerships $1,625 apiece, signal the dealers' intent but do not obligate them to actually pursue arbitration. They can obtain a 50 percent refund if they withdraw their submission in time.
The arbitration association, which is overseeing the process, has started assembling lists of dozens of potential arbitrators in each state. It has started sending the lists to the two parties in particular cases.
The two sides ultimately must agree on a single arbitrator after reviewing arbitrators' backgrounds, expertise, potential conflicts of interest and availability, Johnson said.
If they can't agree, the association will try to pick an arbitrator in each case by the end of February, she said. Arbitrators' reinstatement decisions are due by June.
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →