Chrysler to offer reinstatement to some dealers

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.