News and Finance

Century Motor Corp. of Wentzville is suing Chrysler Group, alleging that the automaker refuses to reinstate Century as a Dodge, Chrysler and Jeep dealership despite an arbitrator’s binding decision for the reinstatement.

A year ago, Chrysler revoked Century’s franchise as part of the automaker’s bankruptcy plan. The arbitrator’s decision in favor of Century’s reinstatement was returned late in May.

But in a suit filed last week in U.S. District Court in St. Louis, Century contends that "Chrysler has refused to issue to Century its standard franchise agreement, or ‘Sales and Service Agreement.’ Chrysler has instead insisted that Century sign a letter which, among other things, would require Century to waive certain rights under the Missouri Motor Vehicle Franchise Practices Act and would grant Chrysler an option to purchase Century’s real estate."

The suit contends that the arbitrator’s decision required no restrictive conditions for reinstatement of Century’s dealership. The arbitration was mandated by a congressional act last year.

The suit seeks a court order directing Chrysler to issue its standard franchise agreement to Century and to reinstate the dealership. A hearing date was not set.

Michael Palese, a spokesman for Chrysler Group, said in a telephone interview that nothing in the dealer arbitration law barred Chrysler from sending the waiver letter to Century Motors.

Kevin Mock, sales manager for Century, said, "We just sorely disagree" with Palese.

Mock said the waiver letter was sent only to 13 former Chrysler dealerships nationwide that have won reinstatement in arbitration to date. Nearly 2,200 other dealerships that weren’t closed in the bankruptcy proceedings had no such restrictive conditions imposed in their dealings with Chrysler Group, Mock said.

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