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Dealer Says Chrysler Is Squeezing It Out

CHICAGO (CN) - Chrysler is squeezing out some of its dealers by refusing to allow them entry to the reorganized, consolidated "Genesis Dealership" program, a Chrysler-Jeep dealer claims in Federal Court. Chrysler announced the consolidation in February, which will damage Chrysler, Jeep and Dodge dealers it does not let into the program, Premier Chrysler-Jeep says.

Premier says Chrysler announced it would exclude some dealers from the Genesis program if they did not meet "land eligibility requirements." Excluded dealers will be able to sell a "significantly reduced product line" from an already reduced line of vehicles.

Premier says Chrysler has paid off some "favored dealers" to help them consolidate into a Genesis dealer, but it does not assist dealers, such as Premier, that cannot consolidate.

Premier says it's asked to become a Genesis dealer, or to be bought out. It says Chrysler refused both requests. Premier claims this violates the Illinois Motor Vehicle Franchise Act.

Premier is represented by Richard Karr.

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