Patterico's Pontifications

6/22/2010

Chrysler Arbitration and Other News

Filed under: Law — DRJ @ 6:51 pm



[Guest post by DRJ]

Chrysler terminated hundreds of its dealerships as a part of the Obama Administration’s restructuring plan / bankruptcy. Congress ultimately established an arbitration system for terminated dealers, and the Denver Post looks at the status of Colorado’s terminated dealerships and finds 8 of 14 revoked franchise agreements were reinstated. That’s a pretty bad track record for Chrysler and apparently management isn’t taking it well.

I bet Chrysler is even more upset that the Indiana Pension Fund is back.

— DRJ

10 Responses to “Chrysler Arbitration and Other News”

  1. That’s a pretty bad track record for Chrysler and apparently management isn’t taking it well:

    Losing only 3 out of 14 isn’t too bad. (we can’t infer anything from the three that accepted settlements, perhaps they could have won, perhaps Chrysler paid them just to avoid the costs they would have incurred winning in arbitration). Put another way, Chrysler wanted to get rid of 14, they got rid of 11, a pretty good batting average.

    Like I said earlier today, it all depends on how you choose to look at the situation.

    steve sturm (116925)

  2. looks like a job for all-purpose stooge-for-hire Kenny Feinberg

    happyfeet (19c1da)

  3. Chrysler has maintained that the dealer shutdowns were necessary and said in a statement Monday that it is “disappointed that some (arbitration) decisions undermine the federal bankruptcy court …

    Given how the secured creditors got assbanged in favor of the politically connected unions in the bankruptcies, this is freaking rich of them to assert.

    JD (d55760)

  4. Zombie dealers of zombie cars. Chrysler should have been allowed to fold. Years ago.

    Kevin Murphyr (5ae73e)

  5. To understand what happened to the auto dealers, you need to think about the business relationship between the car manufacturers and their retailers. Dealers buy franchises for the privilege of selling the manufacturer’s product. That’s a pretty sweet deal for Detroit. Auto dealers are “customers”. They cost the suppliers nothing.

    The business is Darwinian. When it comes time to cut the team, the market will correct itself. If their are too many dealers, the ones who have the best sales performance survive and the poor performers shut down. When Obama took over the auto industry, he used the seizure to punish dealers who did not support his party. Typical Chicago thuggery.

    arch (24f4f2)

  6. On the Indiana appeal,unless the whole bankruptcy is unwound the nonunion taxpayer will be making all the pensions of the auto and state workers whole.Indiana has contractual obligations to fund the pensions.The UAW owns chyrsler till they complete its destuction.

    dunce (3ef93a)

  7. I’m taking my 1997 V6 T-Bird up to Car Craft in Minneapolis/St. Paul next month and am looking to spank any 2010 V6 Dodge Challengers in the 3 contests put on by Car Craft. Doubt anyone with this Mopar crap will show and go.

    PCD (1d8b6d)

  8. When Obama took over the auto industry, he used the seizure to punish dealers who did not support his party. Typical Chicago thuggery Best

    doom (79c683)

  9. ds

    doom (79c683)

  10. Wow!

    GrayZOR (89748b)


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