Chrysler sued for discrimination

This lawsuit is interesting for a couple reasons.  The first, is what it reveals about the complex relationships between the various Chrysler entities and their dealers.  There is Chrysler Motors, Chrysler Financial and Chrysler Realty and they all were involved with this particular dealership; agreeing to sell them cars, assist with financing and possibly acquiring the real property of the dealership.  The lawsuit claims that Chrysler attempted to drive out of business the only African American dealership in New York state.  This activity also resulted in credit lines between Chrysler and the dealership to freeze.  We have seen that happen with Dennis Hecker too who is white so its not so clear if the withdrawal of credit is a discriminatory act or borne out of economic and financial necessity.

From a competitive intelligence perpective, this complaint is useful for what it reveals about how the auto industry works and it would be interesting to read other complaints involving other auto-makers and their dealership to learn if these are industry practices.  Its important to note that not all complaints are as factually forthcoming.

Complaint courtesy Courthousenews

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