Chrysler Sued for Opening a Rival Dealership image

Four Chrysler dealers in New York sue the automaker after it granted a dealership to a local auto group and therefore affecting their sales.

The automaker allowed Lia Auto Group to open a Chrysler dealership in Albany, Colonie. This made the other dealerships in the area consider that the automaker plans to put their sales at risk and therefore trim their numbers, part of Chryslers reorganization plan. The lawsuit is aimed at preventing the Lia dealership be opened and also offering dealerships financial penalties.

The plaintiffs state that Chrysler’s plan is to create a smaller and more efficient dealership network, just like Toyota and Honda did, by adding the Lia Auto Group dealership. The suit was filled on August 15th at the U.S. District Court for the northern district of New York. Lia Auto is scheduled to open its dealership in September and in 2013 it will also build a Chrysler showroom east of Lia Toyota store in Colonie.

“We were impressed with the direction of [Chrysler’s] vehicle strategy, and we feel that they will continue to be strong players in the American automotive market,” Michael Lia, co-president of the Lia Auto Group, said in a statement.