Chrysler store in Utah loses reinstatement bid

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Neil Roland
Automotive News
July 12, 2010 - 12:01 am ET
WASHINGTON -- In an arbitration case involving National Automobile Dealers Association Vice Chairman Stephen Wade, Chrysler prevailed over a terminated Utah dealership found to have inadequate profits, sales and repair service.

Painter's Sun Country Chrysler lost its bid for reinstatement after the arbitrator found that its rural Utah market isn't big enough for two dealerships. The other Chrysler store in the growing St. George area is Stephen Wade Chrysler-Dodge-Jeep, which was given the Chrysler franchise last December after Painter's was taken away as part of the automaker's bankruptcy. The two stores are about 200 yards apart.

The arbitrator said it was too soon to assess Wade's performance as a seller of Chrysler, Dodge, Jeep and Ram vehicles. But, he said, Painter's deficiencies disqualified it from reinstatement in such a small market, even though the store sold all Chrysler brands.

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