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Automakers have typically had little luck possessing automobile dealerships, but that hasn't stopped them from trying. A current effort by Chrysler led to the creation of Motor Village in downtown La, but the regional seller association is none too pleased regarding the facility's location.
Back again in 2008, Chrysler purchased La Brea Avenue Motors and in January, the automaker moved the operation to its latest downtown LA place. The $30 million facility is now house to Chrysler, Dodge, Ram, Jeep and Fiat stores. Sadly, it resides inside ten miles of three other Chrysler dealers, which is a violation of California franchising laws. The nearby vendor association brought the matter to the consideration of the California New Motor Automobile Board back in March, plus the agency has due to the fact voted unanimously to possess the California DMV open an investigation.
California tends to make one-year exceptions towards the franchise law-for example, in the event the automaker partners having a neighborhood dealership that invests in operational enhancements and programs to purchase out the OEM stake-but in the situation in the Motor Village, Chrysler does not qualify. Lawyers for that automaker inform Automotive News that the Chrysler has attempted to search out these kinds of an investor but has been unsuccessful so far. The research for the companion continues, but for now, Chrysler says the store "a check bed for new retail and advertising strategies."
If your DMV finds Chrysler to be in violation in the franchise agreement, California could pull its company license.
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