Quote:
Originally Posted by DealerEx
The only reason they didn't, was because they were in such a rush to take advantage of their "once in lifetime opportunity" (Jim Press's words) to eliminate the dealers they didn't want, and rebuild the company the way they wanted it, that they overlooked that possibility. If they had done it like GM, with a wind down period, I'm sure they would have seized the opportunity. GM didn't come up with their new agreement immediately after the "wind down" notifications went out either...it was a month or two later when they had had time for the lawyers to go thru it thoroughly and draft an airtight agreement giving them unprecedented control of the dealer body.
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It really does make me wonder.
Chrysler spent millions and hired the best bankruptcy lawyers money could buy and yet they failed to capitalize on their "once in a lifetime" opportunity and re-write their existing dealer agreements with the NEWCO dealers.
To be clear, this is a pro-dealer website and I'm happy Chrysler didn't force their NEWCO dealers into signing a more restrictive dealer agreement. My bet is Chrysler already regrets missing their opportunity and they'll find their future efforts to force dealer consolidation will be challenged by state franchise laws.