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Chrysler to pay up to $955,000 to settle Motor Village case

by Bill Cawthon on

Larry Vellequette reports in this week’s print edition of Automotive News that Chrysler Group will pay between $919,000 and $955,000 to settle California charges of improperly operating a factory-owned retail dealership.

The California Department of Motor Vehicles agreed with the California New Car Dealers Association that the automaker’s Motor Village flagship store violated state laws governing the distances required between manufacturer-operated dealerships and independent, or franchised, dealerships.

Chrysler will pay $750,000 in penalties, reimburse the state $160,000 for costs associated with the investigation and as much as $45,000 for post-settlement charges.

Chrysler sold Motor Village to to New Century Automotive Group of North Hollywood, California.

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, 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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