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Chrysler to offer reinstatement to some dealers

by Bill Cawthon on

As early as today, some former Chrysler dealers will be receiving a letter offering a restoration of their franchise. While the exact number of offers hasn’t been released, estimates range from 50 to 100 and recipients are said to include some dealers who did not file for arbitration. Chrysler terminated 789 dealer franchises last year as part of its bankruptcy reorganization.

To qualify for reinstatement, the dealers must meet certain standards including business facilities, sufficient working capital and access to inventory financing.

The company has not made any comments on the reasons for the reinstatement offers but causes could range from trying to winnow down the number of arbitration cases to a realization that certain markets cannot properly be served by a new franchisee. Chrysler has already said it will suspend issuing new franchises in contested markets.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for just-auto.com, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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