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Former Chrysler dealers could reopen under appeals court ruling

Years after the bankruptcies and subsequent bailouts of Chrysler (now FCA) and General Motors, the automotive industry is still seeing legal decisions about them come through the courts. The latest ruling from a US appeals court has given 4 of the 789 dealers that Chrysler closed in its Chapter 11 process one less hurdle towards reopening. Following the bankruptcy, 105 of the shuttered dealers went through an arbitration process in hopes of reopening, and 32 won their arguments. However, a victory in that undertaking didn't necessarily mean that the stores could reestablish themselves. For these three showrooms in Michigan and one in Las Vegas, state laws allowed nearby competitors from the same automaker to stand in the way of restarting, according to Automotive News. This problem brought yet another lawsuit, and a US district court found that the arbitration decisions did not overrule state laws. The latest appeals court ruling overturned that decision. However, as with many legal proceedings, the process for reopening for these dealers still isn't exactly easy. The latest decision only covers the nearby dealers' ability to protest; it doesn't mandate FCA actually to open the stores again. According to a statement from Michael Palese of FCA legal communications to Automotive News, the ruling, "did not provide for reinstatement of the dealers who prevailed in arbitration, but only gave them a right to a 'customary and usual' letter of intent." It means for these showrooms to start selling again, now they need to work things out with Chrysler's new owner.

SRT pulling Vipers out of Le Mans

Last year, Chrysler campaigned a pair of SRT Viper GTS-Rs in the 24 Hours of Le Mans. It was the first time Auburn Hills had sent a team to the famous French endurance race since 2000, when the Viper ended a three-year winning streak in the GTS class. It finished in 24th and 31st places, woefully behind the Porsche 911 RSR that won the LMGTE Pro category. But this year it won't be back. According to a report from Sportscar365 citing a statement issued by SRT chief Ralph Gilles, the outfit turned down its invitation from the ACO that organizes the race, ending what could have been a multi-year campaign. Instead it's opting to focus on its Stateside campaign in the United SportsCar Championship. SRT sent Autoblog the following statement: "We regretfully and respectfully decline to participate in this year's 24 Hours of Le Mans," said Ralph Gilles, President and CEO of SRT (Street and Racing Technology) Brand and Motorsports, Chrysler Group LLC. "We are honored to once again be invited by the ACO (Automobile Club de l'Ouest) to compete in this historic event, and they were the first to be informed of our decision. We will remain focused on our North American racing program in 2014." In its place, the Ferrari 458 fielded by JMW Motorsport will be invited to fill the last slot in the class, leaving only the Corvette and Dempsey Racing entries to represent the United States in the race this year. "Hopefully, we'll continue to go to Le Mans for many years to come," as SRT's marketing chief Beth Paretta put it when announcing the effort a year ago, "but as a sports-car fan, if you can make the trip even once, it's worth it."

Chrysler Recalling 870,000 SUVs For Brake Defect

Chrysler is recalling nearly 870,000 SUVs because corrosion may make the vehicles' brakes harder to use. Jeep Grand Cherokee and Dodge Durango SUVs from the 2011 through 2014 model years are involved. Chrysler says crimp joints in the brake boosters can corrode if they're exposed to water. If the water freezes, the boosters won't aid braking as they usually do. Chrysler began investigating after some customers said their brakes felt too firm when pressed down. The company knows of one accident, but no injuries, due to the defect. Dealers will install a shield to protect the boosters for free and replace boosters that aren't working properly. Chrysler has since changed the design to make the boosters more corrosion resistant. Chrysler will notify owners of the recall, which involves 867,795 vehicles. Related Gallery Safest Crossovers For The Budget-Conscious Family View 10 Photos Recalls Chrysler Dodge