Pearson gets OK on Chrysler Jeep auto dealership
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
.
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Reader Reactions
Personally, I’m ecstatic to see Haynes’ Chrysler-Jeep go away. I purchased a Jeep Grand Cherokee from them in 2001 and the vehicle spent more time in the shop than it did on the road. They are your best friend when they are trying to make a sale, but once you bought a vehicle from them, then the make you feel like you’re pestering them when you have a problem. They would not escalate an ongoing service issue with the vehicle to Chrysler after it had been in for service four separate times for the same issue with the steering wheel. I’m thankful the steering system didn’t lock up when I was driving it, or perhaps that would have been the only way to have gotten some service if I had survived a crash. I sincerely with Pearson the best in this location and I hope they treat their customers much better than the crooks at Haynes’ did over the years. If not, then Jimmy Whitten has nothing to worry about.
I disagree about the consolidation of foreign auto makers. In larger cities such as Phoenix, AZ there are almost 20 Toyota dealerships. They all do well and they’re a textbook example of why Toyota remains competitive in the US market. If I have to drive 45 minutes to get to a Jeep dealer when I have a Nissan dealer right around the corner, I’m going to the Nissan store first. Saying that foreign dealerships should shut down isn’t fair to that brand. Its not their fault that the US automakers have grown lazy and, as a result, we’re five years behind as far as building reliable automobiles.
Hey “Interested Read”...I completely agree with you. I can understand if we were talking about a reputable automobile maker like Toyota or Honda, but we’re talking Chrysler. And in a story on Monday at CNBC.com, there was a story about how GM and Chrysler would be downsizing. It said, “This week GM and Chrysler will start the crucial and ultimately messy process of trying to dramatically downsize their operations, debt and dealerships.“ The only problem, though, is that GM and Chrysler will have to buy out their own dealers. Sounds like a good use of the $4 billion that they’re going to receive from the government. Let’s just hope that whoever is foolish enough to buy Chrysler invests time and resources into making it a company that actually produces quality vehicle, or it will never survive.
This will not be the last time this happens. Many dealerships could be consolidated. Do we really need 6 Honda dealerships in Richmond area?? Or 5 Toyota dealerships? Come on now, how many can you buy? There are too many dealerships around town now for a city of this size. Maybe consolidation is the key here.
WooWoo, does anyone really care? Just another`deal among bandits who now want our sympathy are ripping us off for years and years, bah!
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