At least 43 percent of General Motors Co. and Chrysler Group LLC dealerships that were closed or scheduled to be shut have applied for U.S.-required arbitration to reverse the automakers' decisions.
More than 1,200 of about 2,800 eligible dealerships filed and more are expected to do so by the deadline of the end of today New York time, said India Johnson, organizer of the process for the American Arbitration Association.
"We've been taking in cases for a number of weeks," with the next step to be choosing arbitrators, she said.
GM and Chrysler scaled back dealer ranks as they went through government-aided bankruptcy reorganizations last year. The arbitration process for their retailers closed or slated to be shut was required under a federal law signed by President Barack Obama last month.
"If I got the opportunity to get it back I would be more than overwhelmed," said Jim Tarbox, who lost a Jeep franchise in North Kingstown, Rhode Island. "My intent would be to get my franchise back and become the No. 1 Jeep dealer in New England again."
The arbitrators, usually lawyers or retired judges, have until June 14 to decide whether a dealership will be restored or continued, Johnson said. They can't award damages, she said.
Wind-Down Notices
GM sent wind-down notices to 1,300 dealers with Chevrolet, Buick, GMC or Cadillac franchises last year, and another 700 were told they might lose some outlets among several they owned, said Ryndee Carney, a spokeswoman for the Detroit-based company. The dealers have until October to close, and some already have, she said.
The legislation doesn't apply to GM's Saturn, Pontiac, Saab and Hummer brands, which are being shut or sold, Carney said.
Chrysler terminated 789 dealers in June. Sergio Marchionne, the Auburn Hills, Michigan-based automaker's chief executive officer, has said the legislation requiring arbitration over the closings might be unconstitutional.
"We will abide by the rules," said Kathy Graham, a Chrysler spokeswoman. "The legislation changes the game six months into our process."
