Chrysler Group may challenge the constitutionality of the dealer-arbitration bill signed by President Barack Obama, CEO Sergio Marchionne said today.
The legislation would require General Motors Co. and Chrysler Group to offer rejected dealers a chance to appeal the loss of their franchise to a neutral arbitrator.
Marchionne said the bill, coming months after the automaker dismissed 789 dealerships during bankruptcy proceedings, "would cause havoc within Chrysler."
"The bill is not free of some debate on its constitutionality," Marchionne said. He said Chrysler has not yet decided whether to mount a legal challenge, adding: "We will take advice and we will also follow the lead of General Motors."