Tags: GM | Restore | Dealers | Arbitration

GM to Reinstate 600 Dealerships Slated to Be Cut

Friday, 05 Mar 2010 03:36 PM

 

General Motors Co. will reinstate more than half the dealerships it targeted to drop from its network.

GM executives said Friday that about 600 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the automaker.

The Detroit automaker last year told 2,000 dealerships it would revoke their franchise agreements in October 2010 as part of its restructuring. The company has said it needs to shrink the number of showrooms to keep the remaining ones healthy.

The dealerships, who say they have been treated unfairly, have been appealing the decision.

The cuts to GM's 6,000-dealer network were designed to compensate for much lower demand for cars and trucks, but some dealers have argued that lots that are still profitable are at risk, and that the automaker hasn't offered enough details about how it's choosing which businesses to shutter.

GM and Chrysler, which has slashed 789 dealers, have said they would reconsider the cuts. The decision was a compromise meant to avoid federal legislation that would require that the showrooms be kept open.

Under the revised plans, dealerships would get face-to-face reviews, binding arbitration and faster payments to help dealers slated for shutdown.

Congress-brokered talks between dealer groups and the automakers began in September. But those talks stalled over disputes about the review process for targeted dealerships and other issues. Looming over the fight has been the threat of federal legislation to deal with the closures. Lawmakers warned that if a deal wasn't reached, that legislation would move forward.

The White House has opposed the legislation over concerns that it could hurt GM's and Chrysler's efforts to rebound from their government-led bankruptcies.

© Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Mike Huckabee: Misquote on 'Trashy Women' Was No Mistake

Wednesday, 28 Jan 2015 22:51 PM

Former Fox News host Mike Huckabee says it was no mistake when the website Politico reported that he said the women of F . . .

Couple Lose Court Case in Abortion Based on Lab Error

Thursday, 29 Jan 2015 10:49 AM

A New England couple who aborted a four-month-old fetus in 2009 after early genetic tests suggested disorders in the fet . . .

Study: Chances of Dying in a Car Crash Plunged Over 3 Years

Thursday, 29 Jan 2015 10:08 AM

Safety researchers say the chances of dying in a crash in a late-model car or light truck fell by more than a third over . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved