Chrysler Group is keeping score of arbitration rulings. So far, the carmaker has had eight wins and only one loss. The decisions for the latest three wins were handed down very recently.
These cases involved the following dealerships: Hinckley Dodge in Ogden, Utah (which only sold Dodge); Tenafly Chrysler Jeep in Tenafly, N.J.; and Midway Motors in Framingham, Mass (which sold Chrysler and Jeep). Hinckley and Midway competed with Project Genesis stores nearby while Genesis stores carried all four Chrysler brands. The company’s goal is to convert its entire dealer network to Genesis dealerships by the end of 2011. In a statement, Chrysler revealed that during the arbitration hearings, it gave evidence illustrating that it used “sound business judgment” in restructuring its dealer network. In the Hinckley case, the arbitrator gave much weight to Chrysler’s Genesis strategy. In the May 17 decision, arbitrator Robert M. Anderson said that Chrysler will organize the Ogden marketplace in a way that “more closely coincides with its plan to implement Genesis.”
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