Chrysler has offered to keep open 50 of its U.S. dealers closed last year as it tries to revitalize sales after emerging from bankruptcy.
The No. 3 U.S. automaker terminated franchise agreements with 789 dealers last June when it emerged from bankruptcy under new management led by Italy's Fiat SpA.
More than half of those dealers, or 418, appealed against closure after Congress in December required an arbitration process for terminated dealerships at General Motors and Chrysler. The two automakers together received more than $65 billion in taxpayer-supported bailouts and other financing.
Earlier this month, General Motors offered to keep open 661 of its U.S. dealers once targeted for closure as it tried to shore up sales under new Chief Executive Ed Whitacre.
Chrysler said in a statement Friday, "The 50 dealers are in locations that offer customer service benefits and will have limited adverse impact on the dealers within our current network.
"Discussions to find mutually beneficial alternatives to arbitration with other dealers are under way."
Chrysler previously reinstated 36 of the 789 closed dealerships. Its new offer would leave the company with 2,478 dealers in the United States. It had 3,298 U.S. dealers at the end of 2008.
Industry executives have said the termination of Chrysler dealerships has created ill will among its dealers and hurt the company in the marketplace.
Chrysler is struggling to rebuild trust among American consumers by revamping its aging, truck-heavy lineup through 2014, with a dozen new vehicles built on Fiat platforms.
Chrysler saw a 36 percent decline in U.S. sales last year, the largest drop among the six biggest automakers in the U.S. market. Overall U.S. industry sales were down 21 percent.
