Closed Dealers May Get Reprieve

Tuesday, December 8, 2009

GM and Chrysler are said to be taking a second look at their decision to close dealerships in the wake of their Federal bailouts and subsequent bankruptcies. The car makers insisted that the process is necessary to maintain profitability. Dealers who have been marked for closing maintained that the process has been unfair, arbitrary and shrouded in secrecy.

The two manufacturers are offering to enter into binding arbitration with dealers but dealers aren’t satisfied with the discussion points that would be part of those negotiations. Meanwhile, Congress is debating measures which would force GM and Chrysler to reinstate dealers who were axed. The car makers say they’ll withdraw the arbitration offer if such legislation passes.

--M.D.

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