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California DMV To Levy Fines Against Chrysler

Chrysler Corp. had been running a corporate owned dealership in Los Angeles. That was in direct contradiction to franchise agreements with other Chrysler dealerships. The automaker is voluntarily selling the dealership, but the CDMV is considering levying fines anyway.

Chrysler had hoped that by selling Motor Village of Los Angeles to New Century Automotive Group they could avoid fines or censure of any kind. The CDMV claims that the company made false statements surrounding the dealership’s ownership. If a settlement materializes, Chrysler could wind up paying restitution to private Chrysler dealerships within a 10-mile radius of the factory-owned store. If not, a hearing will ensue during which Chrysler could be be fined heavily.

Chrysler is attempting to claim it was all a mistake on the company’s part and will never happen again. How does a company with several hundred lawyers on staff make a simple legal mistake like this? Something doesn’t sound quite right, does it?

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