Riverdale car dealership loses arbitration to remain a Chrysler dealer

Published: Wednesday, June 23 2010 10:26 a.m. MDT

LAYTON — Cutrubus Motors is one of the few Utah dealerships to win arbitration against Chrysler, which allowed the company's Layton dealership to remain a Chrysler seller.

But Cutrubus' Riverdale dealership did not succeed in the same fight.

The Riverdale dealership, Rocky Mountain Chrysler Jeep at 770 W. Riverdale Road, also was fighting the terminations that Chrysler Corp. enacted as part of its bankruptcy through a bill allowing dealers who believed they had been wronged to pursue binding arbitration. However, an arbitration ruling announced the Cutrubus dealership in Riverdale would no longer be able to sell Chrysler vehicles.

So far, the Layton dealership is one of 13 dealers to win arbitration against Chrysler. Of about 200 arbitration cases against Chrysler, the Auburn Hills, Mich., company has won 37 cases, and more than 125 have been withdrawn.

Chrysler Corp. announced in a press release that it was pleased with the decision and hopes the dealer network it has in place now will yield a greater success.

"Chrysler Group not only employed sound business judgment but is acting in the greater public interest by protecting the dealer network that was created as a result of the bankruptcy proceedings," the company said in a statement.

Cutrubus representatives could not be reached for comment Tuesday.

— Lana Groves

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