Over 20 Fiat and Alfa Romeo dealerships in California have filed protests with Fiat Chrysler Automobiles after the company unexpectedly changed contractual agreements.
The wide-ranging changes to franchising agreements include stipulations that dealerships use manuals produced by FCA. In these manuals are rules regarding dealership training, net working capital requirements, facility requirements and a host of other key dealer operations. Additionally, FCA says that these rules can be changed with very little notice.
Speaking with AutoNews, Sacramento attorney Gavin Hughes who filed almost half of the protests, said “This is shifting the burden away from FCA and to the dealers to be up-to-date on any changes that may be posted.
“Most dealer concerns are that they’re going to start posting changes whenever they like.”
Other changes to the Fiat/Alfa dealership contracts include FCA’s obligation to provide certain vehicles to franchisees, legal standards which dealers must meet to sell vehicles and the definition of products beyond vehicles. Some of the new contracts even specifically instruct dealers to “energetically, actively, aggressively and effectively” sell and lease their vehicles.
“At this point, the new agreement is going to put additional burdens and additional risks on the dealer. It’s unreasonable for the manufacturer to unilaterally be able to change the terms of a contract,” Hughes said.
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