Posted on 06/15/2010 3:22:25 PM PDT by STARWISE
Chrysler Group made the wrong choice in deciding to keep open one New York state dealership and reject another, said an arbitrator who relied on performance data for both stores.
The arbitration for Terry Chrysler-Jeep in Burnt Hills, N.Y., may be the first in which comparative operating data, including sales, was used, said the Terry dealership's lawyer, John Gentile. The data were unsealed last month by U.S. Bankruptcy Judge Arthur Gonzalez.
However, it won't be the last such case, as Gentile's law firm in Mineola, N.Y., plans to introduce performance figures for its clients and their competitors in two other cases. It is encouraging lawyers representing other dealers to do the same, Gentile said.
The arbitrator in the Terry case ruled that Chrysler, which moved to cut dealers last year to match sales with demand, had in effect chosen to keep open a nearby Clifton Park dealership rather than Terry, located outside Albany.
“A review of the criteria used by the covered manufacturer to terminate the covered dealership's franchise agreement shows that the Terry dealership appeared to be a better candidate to remain an active dealer as compared to the Clifton Park dealership,” the arbitrator's June 8 decision said.
Better performance
Arbitrator Larry Biblo compared Terry's performance with that of the other dealer under a number of criteria.
He noted Terry's superior floorplan status with lenders, its better financial status with Chrysler, its greater working capital and its superior sales performance.
Chrysler had chosen the dealership, eight miles from Terry Chrysler-Jeep, “due to a perceived difference in the demographic and geographic characteristics of the two,” the decision said.
That rival dealership eventually went out of business after Chrysler's bankruptcy last year, and the location remains vacant, the arbitrator said. Chrysler had hoped to turn the Clifton Park store into a Genesis dealership that sells all of the company's brands.
“I'm really excited about this,” said Charlie Morris, 40, who owned the Terry dealership along with his mother, Noella. “I look forward to working with Chrysler.”
Chrysler reaction
Chrysler expressed disappointment.
“The decision undermines the federal Bankruptcy Court order that affirmed the rationalization process used to reject the dealership agreements,” the company's statement said.
Chrysler added: “While difficult, the actions to reduce Chrysler's dealer network were a necessary part of Chrysler Group's viability and central to the financing and partnership with Fiat. The only alternative would have been complete liquidation.”
Last month, Gonzalez unsealed data detailing each rejected Chrysler dealer's performance.
The judge held that each dealer can get copies of the performance charts of rivals that Chrysler considered for termination.
Chrysler said last month it already was producing the data sought by individual dealers, but dealer lawyers said the company was producing only fragments of dealer performance scores in arbitration.
The law firm that secured the Bankruptcy Court order, Bellavia Gentile in Mineola, also represented Terry in arbitration.
“We couldn't have proved that Chrysler didn't follow its own business plan in this case without the spreadsheet data,” Gentile said.
Chrysler said it has fewer than 85 arbitration hearings left.
“The decision undermines the federal Bankruptcy Court order that affirmed the rationalization process used to reject the dealership agreements,” the company's statement said."
Creating rights as they go along, and choosing winners based on politics.
NEWSMEAT - MORRIS AUTO GROUP, BURNT HILLS, NY = REPUBLICAN DONORS.
About the Terry Morris Auto Group
~~Ping !
Hmmm. Wonder what the "demographic" difference was?
EXCELLENT!! Obama and his goons are finally getting some push back. When the crimes of the Obama Administration and democrat run congress finally rise to the surface..this country is going to be shocked! We won’t..we saw it coming and have documented most of it right here on FR.
Next we need to ascertain the $$ donations made to what/which candidates by the respective dealership owners ...
See my Newsmeat political contribution link above.
Scummy politics, as we knew at the time.
This can’t be right, I’m sure something important was overlooked. Did the arbitrator look at the political affiliations of the owners of the two dealerships? That’s important because all this was decided the “Chicago way”.
This should have been front page headlines and cause for impeachment and imprisonment.
How does the govt. get off closing a successful dealership? (privately owned) do they just tell them they are not going to send them any more cars? If GM wants to sell cars it needs the successful dealerships to STAY OPEN!!! Was it to prop up a different dealer? Maybe one that is DEMOCRAP OWNED?
HOW CAN IT BE THAT THE ONLY ONES CLOSED WERE REPUBLICAN OWNED???
Interesting, that they exclude the name of that
“chosen” dealer.
One down. Now to prove the pattern. There just might be a rainbow after this storm.
Can we check the race and political contributions of the two owners?
I'd guess that Republicans owned and worked at the closed dealership.
I read elsewhere most of the dealers closed were registered Republicans . This seems to confirm that.
If Republicans can get control of the House, there will be a world of opportunities for congressional committees to investigate. The Baraqqis make the Clintons look like boy scouts.
“HOW CAN IT BE THAT THE ONLY ONES CLOSED WERE REPUBLICAN OWNED???”
Now, now! ONE of them donated to Democrats. Hillary.
Yeah notice how ‘Chrysler’ chose...per the article, not Obama and his ‘car czar’...
Gee, I wonder if the Miller Family in Vestal were 86’ed for the same reason? Harrumph.
This has got to stop. Why doesn’t SOMEONE scream and yell in the Wizzard’s face?!?
The chosen dealership was owned by a registered Democrat.
The closed dealership was owned by a registered Republican.
Any other questions?
If nobody else understood or realized it, most of us on FR knew the closings versus those saved were politically motivated. I have not seen one instance where a GOP donor was allowed to survive, but a Democrat donor was supported.
Welcome to the world of 0.
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