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Chrysler, dealers enter arbitration

by David Zatz on

Over half of the dealers dropped by the new Chrysler will take part in binding arbitration with the new company, following a bipartisan bill passed by both houses of Congress.

Congress had refused to pass a bill to rescue General Motors and Chrysler, with representatives from both parties saying the government should not get involved in private industry.

With the rules spelled out by the government, 409 former Chrysler dealerships will participate in the binding arbitration process. A similar proportion of General Motors dealerships is going through arbitration with GM.

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