Automotive News - With just days left on Chrysler Group's offer to reinstate 50 closed stores, some dealers are pleased with the deal the company is offering; some are telling Chrysler to bag it. "Nobody in their right mind would agree to this," California dealer Richard Carpenter says of Chrysler's terms for costly improvements, and its demand for a five-year waiver on protesting new nearby points. In certain cases, dealers are pleased with the offers and intend to sign. "Half of my staff has been calling looking for jobs, and I have customers calling daily wanting to know if we're going back," said rejected New Orleans dealer Mike Comiskey. "I'd like to make a living again, and I think the brand can survive." Many dealers also are dismayed by the tight 10-day window for a decision on the offers, which began going out March 26. But a Chrysler source said the company is flexible and will talk to dealers who have questions and may need more time. Carpenter said the store upgrades Chrysler wants could cost as much as $3 million -- and says the company wants the job done in just eight months. In addition to saying no to Chrysler's offer, he's dropping his arbitration case, too. Harold Johnson, who now sells used cars in Wichita, Kan., said he spent half a million dollars a few years ago to upgrade his store and could save as much as $100,000 in arbitration expenses by signing -- which he plans to do. One Midwestern dealer said he is leaning against signing because the requirements of the letter he received aren't clear and he hasn't been able to get a clarification from Chrysler. The seven-page Chrysler letter also attaches a number of conditions that would make it easy for the company to wiggle out of the agreement, said the dealer, who asked not to be identified. The dealer said Chrysler made the offer while he was in the middle of selling parts back to the company for less than 30 cents on the dollar. If he were to sign, he would have to buy back the parts at full price, resulting in a loss of almost $100,000. Chrysler has said it is offering reinstatement to 50 closed showrooms that sold the Chrysler, Dodge and Jeep brands under one roof out of 387 that filed arbitration claims. Chrysler CEO Sergio Marchionne said in a speech last week that the 50 dealerships "are in locations that will benefit our customers but not have an adverse effect on existing partners in our network." Chrysler was closed for the holiday weekend on Friday, April 2. The company issued a statement on the process: "Chrysler Group offered standard letters of intent in the interest of finding a mutually agreeable alternative to arbitration. The dealerships involved filed for arbitration, signaling they wanted to join Chrysler Group's dealer network." Leonard Bellavia, a Mineola, N.Y., lawyer who represents dealers, said General Motors Co.'s letters of intent last month to 661 rejected dealerships "were more businesslike, more reasonable and less amorphous" than Chrysler's letters.
Dealers Split on Chrysler Offer
More Industry

Hyundai Celebrates U.S. Milestone
The South Korean automaker said it supports 570,000 jobs in the U.S. with a planned investment of $26 billion between 2025 and 2028, according to President and CEO José Muñoz.
Read More →
Used-Vehicle Program Aims to Draw More Buyers
GM says more than 750 dealers across the U.S. are enrolled in CarBravo and that in January CarBravo dealers sold over two times the certified volume of Chevrolet, Buick and GMC dealers using traditional CPO.
Read More →Meet the Editor: Hannah Mitchell
A longtime newspaper journalist, Bobit Dealer Group's editor was raised on news back in the South. Now she brings that news-hound ethic to our four auto retail magazines.
Read More →
Enhance Your Dealer's F&I Workflow at Agent Summit
This session is designed to equip general agents with actionable strategies that can help their dealers enhance the efficiency of financial services managers.
Read More →
Auto Brands Hold the Line on Retention
A flat national rate despite inflation and other financial challenges shows industry loyalty stability, annual Reynolds and Reynolds research finds.
Read More →
Price Driving Insurance Churn
Over half of insurance holders ages 18 to 29 reported to be 'somewhat' likely to change providers in the next 90 days, according to CivicScience, which found that interest was lower among older age groups.
Read More →
AI Drives Dealer Website Traffic
Total visits to dealer websites from generative artificial intelligence platforms grew more than 15 times year-over-year, signaling a shift in how many consumers shop for cars online.
Read More →
Automakers Tops in Fuel Economy
In the U.S., Honda has the most efficient gas-electrified combo lineup while Tesla beats all automakers in annual EPA ranking as brands built their alternative-fuel offerings.
Read More →
Report Finds Year-End F&I Strength
Deal volume ebbed and flowed throughout 2025, but product performance remained steady, according to automotive technology and data intelligence solutions provider StoneEagle.
Read More →
Overall Consumer Confidence Up
Americans’ view of present business conditions, the labor market and family finances, though, are still in the dumps, and if they plan to buy cars, many target used units.
Read More →
