Chrysler set to reopen 50 dealerships

Chrysler set to recover from bankruptcy

Chrysler recently announced that it will offer 50 closed dealerships reinstatement, reversing an earlier decision to not reinstate any dealerships.  Approximately 400 dealerships applied for franchise reinstatement through arbitration, and Chrysler has decided to send letters of intent to 12.5% of them.  As recently as mid-March, the company had showed signs of not reinstating any dealership seeking arbitration.

According to Chrysler, the dealerships selected to be reinstated were chosen because they “are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network.”  Each of the dealerships will house all four brands currently owned by Chrysler.

Coinciding with the reinstatements, Chrysler also revealed that 36 other closed dealerships have been offered contracts and sales agreements in addition to the 50 offered reinstatement.  An undisclosed amount of dealerships that have also shut there doors are currently in settlement talks with the company as well.

With a total of 86 dealerships either reinstated or on the track to be reinstated, about 11 percent of the 789 Chrysler dealerships closed in June of last year could be reopening their doors very soon.  This number could easily rise if more of the unnumbered dealerships have settled deals with the company.

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