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Chrysler’s tough new franchise offer

by David Zatz on

Now that Chrysler has shed itself of 789 dealerships, many of which were close to existing other-brand dealers, the company is asking over 500 dealers who do not sell all three brands to sign up for the missing lines (according to an Automotive News article by Donna Harris).

The tough new contract would:

  • require dealers to waive their rights to protest competitors being set up nearby;
  • make the dealerships exclusively C-D-J for a full 30 years
  • give Chrysler first dibs on buying or leasing the property if the dealer wants to get out of the business
  • force dealers to buy new vehicles, parts, and tools from “rejected dealers”
  • require physical plant upgrades to meet current image standards

David Zatz founded Allpar in 1998 (based on a site he had begun in 1993-94), after years of writing reviews for retail trades. He has been quoted by the New York Times, the Daily Telegraph, the Detroit News, and USA Today. Before making Allpar a full-time career, he was a consultant in organizational psychology. You can reach him by using our contact form (much preferred) or by calling (313) 766-2304

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