Auto dealerships line up for arbitration

DETROIT, Jan. 22 (UPI) -- Nearly 600 out of 3,000 U.S. auto dealers on Chrysler and General Motors' closing lists have appealed their cases, the American Arbitration Association said.

Dealerships have until midnight Monday to file appeals under a provision signed into law in December despite opposition from automakers, The Detroit News reported Friday.

India Johnson, senior vice president at the American Arbitration Association said nearly a quarter of the dealerships on the closing lists have filed appeals and more were expected.

Johnson said the number could rise to 800, while Alan Spitzer, who filed 10 appeals on behalf of the Spitzer Auto Group, predicted the number could reach 1,000.

"I think dealerships have a very good chance of getting their dealerships back," he said.

The arbitration process is not open to Hummer, Pontiac, Saturn or Saab brands, which GM intends to close or sell.

But GM said as many as 2,000 dealerships qualify for the arbitration process, 1,300 of which were complete closings and 700 of which were dealerships that were ordered to give up one or more brands.

Among Chrysler Group dealerships ordered to close, 789 are eligible for arbitration, the News said.