As part of the U.S government-initiated and – supervised bankruptcy reorganization of Chrysler Corp almost 800 Chrysler dealerships were terminated Many of those dealers felt that the forced closings by Chrysler of their businesses was grossly unfair and wanted to contest the closing either through arbitration or the courts They could not do so however. because the bankruptcy specifically prohibited arbitration or lawsuits against Chrysler Indeed one of the key reasons for pursuing the bankruptcy option was to gain protection from pushback from dealer lawsuits or arbitration actions But the dealers were able to lobby Congress to pass a law that would override bankruptcy protection and allow the dealers to pursue arbitration to stay in business as Chrysler dealers Given the passage of the new law. many of the dealers looked to arbitration to keep their dealerships open.
Discuss the power shifting that seems to be occurring in the channel Are there “good guys” and ”bad guys” here? Explain in terms of the possible causes of the conflict and ensuing power struggle between Chrysler and its terminated dealer.
