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LAYTON -- When Chrysler terminated car dealerships across the country last year, many dealers argued that business was good and they deserved to keep their franchises.
Rejected dealers still want answers. An arbitration process is getting started to do that, but already competitors are moving in to open up new Chrysler dealerships, and the court filings are starting to add up.
One of those dealers is Homer Cutrubus of Cutrubus Motors in Layton. Chrysler emptied out his successful Ogden showroom last year. He was among nearly 800 Chrysler franchise owners terminated by the company, and he has a 50-year history with Chrysler.
"We were really shocked because we were a five-star dealer here," Cutrubus says.
Last year, Cutrubus knew Chrysler needed to cut back, but he had no idea they would terminate a five-star dealer. He sold off his cars and still has $1 million in parts he doesn't need and can't sell back to Chrysler. He went back to his original business: selling used cars.
Now, Cutrubus has to deal with a 200-page lawsuit from Chrysler charging him with contempt of court. The company sued him because he requested a stay of action to prevent any other dealer from opening up a Chrysler shop in the area until arbitration is complete.
Turns out, it's already too late for that. The Larry H. Miller Group will open this dealership a mile away within the week. Chrysler even wants Cutrubus fined $10,000 a day until he drops the stay request.
"They say we're in contempt of court with the bankruptcy decision," Cutrubus says.
Other rejected dealers across the country are taking the same stand. Chrysler argues they do not have the right to prevent other new dealerships from opening up.
"We've had a hard time settling some of our debt with them, but by and large just moving on selling used cars on our two facilities," Cutrubus says.
The auto dealer says he doesn't necessarily want to reopen a Chrysler dealership, but the company killed his franchise, his valuable asset. He lost 100 employees between two dealerships. As a matter of principle, he says he deserves to know the criteria used to terminate his franchise.
"If somebody takes you in business, you fight for your right," Cutrubus says. "And this was a taking, and nothing less than that."
Cutrubus has to go to New York to fight the suit later this month. Separately, he looks forward to answers from arbitration.
"They have to at least let us know what the criteria was," he says.
As for the new dealership a mile away, the Larry H. Miller Group is not involved in the lawsuit. The company says it went through the proper formal process to get a Chrysler franchise, and it will open within the week.
E-mail: jboal@ksl.com
