A deal between longtime Richmond-area automobile dealers Haynes Motor Co. and Pearson Automotive Inc. has cleared its final hurdle and could be completed as soon as this week.
Haynes is selling its Chrysler Jeep franchise to Pearson.
When finalized, Haynes will close its dealership at 9520 W. Broad St. The Chrysler Jeep franchise will be transferred to Pearson's property at 8250 W. Broad St. It is not known how much inventory or how many employees will make the move.
The Pearson property, a Lincoln Mercury franchise until it was sold late last year, houses a Mazda dealership.
Chrysler LLC, which grants franchise rights, should finalize the deal this week, according to Frank Pearson, president of Pearson Automotive.
The sale of the franchise has been in limbo for several months because Whitten Brothers of Ashland Inc., which owns Whitten Brothers Chrysler Jeep, opposed it.
Whitten Brothers claimed the Pearson franchise would be a new dealership and would infringe on its market. The new dealership, it said, would be too close to its Ashland store and cannibalize its customer base.
In an e-mail dated Nov. 6, Scott J. Mahoney of automaker Chrysler wrote to Whitten Brothers co-owner Jimmy Whitten that "Chrysler does not believe that your dealership has standing to protest the operating of the Chrysler and Jeep franchise" at 8250 W. Broad St.
Mahoney wrote that there will be no harm done to Whitten Brothers Chrysler Jeep because no new dealership has been added in the area.
The Virginia Department of Motor Vehicles provided copies of the e-mail and several letters between Whitten's attorney, Chrysler LLC and DMV Commissioner D.B. Smit. The department can mitigate disputes by dealers when manufactures decide to bring an additional franchise of the same make into a market.
Reached by phone yesterday, Jimmy Whitten said all he was trying to do was protect his interests. "I have no problems with Haynes or Pearson," he said.
In a letter dated Nov. 13 to Smit, Whitten Brothers attorney Grant S. Grayson requested that the commissioner hear the case and make a decision on whether to allow the sale to go forward.
In opposing the hearing, Wendy S. Mirkin-Fox, an attorney for Chrysler, said the manufacturer was well within its rights to move the franchise from one dealer to another.
On Dec. 18 Smit denied Whitten Brothers' request for a hearing, saying the dealer had not been able to prove the Pearson dealership would infringe on its market.
Denying the hearing, according to DMV spokeswoman Melanie Stokes, closes the case and allows the sale to move forward.
Stokes said the dealer can appeal the decision.
"I will abide by the DMV's decision," Whitten said yesterday.
Since the decision, the dealers have been waiting for Chrysler to finalize the arrangements and officially award the franchise to Pearson.
Contact Louis Llovio at (804) 649-6348 or LLLovio@timesdispatch.com.
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