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Chrysler Group LLC Reinstates 50 Dealers

March 26, 2010

AUBURN HILLS — Chrysler Group LLC announced March 26 that it intends to reinstate 50 arbitrating dealers whose contracts were rejected as part of OldCarCo’s bankruptcy proceedings last year.

“The 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network. Discussions to find mutually beneficial alternatives to arbitration with other dealers are under way,” Chrysler said in a statement.

The reinstatement of these dealers is in addition to 36 other resinstated dealerships, which were issued “letters of intent and/or sales and service agreements previously awarded to dealers whose contracts had been rejected by OldCarCo,” the automaker added.

The National Automobile Dealer Association (NADA) welcomed the news with its own statement. “The announcement by Chrysler today of its intent to reinstate 50 dealers is a move in the right direction. This, coupled with previous contracts or letters of intent awarded to 36 other closed dealerships, brings the total to 86 dealerships that could be reinstated,” said Ed Tonkin, chairman of the NADA.

“NADA views this as a good faith effort, and hopes that this carries forward in Chrysler’s continuing settlement and arbitration discussions with the other terminated dealers,” Tonkin added.

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