Crain Automotive Seeking Arbitration With Chrysler Over Franchise Loss

LITTLE ROCK – A central Arkansas auto dealer is asking for arbitration with Chrysler LLC over the loss of its Chrysler franchise in Little Rock.

Crain Automotive Group’s request is in a filing with the American Arbitration Association released Thursday.

Crain is one of 789 Chrysler dealerships nationwide that lost its Chrysler Dodge Jeep franchise as part of Chrysler’s bankruptcy. Cook Jeep Chrysler Dodge in Little Rock also lost its franchise.

When Chrysler announced in May its intention to close 789 franchises, Larry Crain Jr., president of Crain Automotive Holdings LLC and the owner of Little Rock’s Crain Chrysler Dodge Jeep, was stunned to see his company’s name on the list.

Crain said at that time that just a few days before the announcement, Chrysler representatives indicated that his family’s company was going to be its Little Rock dealer going forward.

Chrysler has awarded the Little Rock franchise to Steve Landers.

The filing with the Arbitration Association says a law passed by Congress in December allows dealerships that lost their franchises to seek reinstatement.

(Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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