At least 100 GM dealerships will be restored in the arbitration process

Article by Christian Andrei, on August 27, 2010

At least 100 of General Motors Co.'s dealerships are expected to be restored under the arbitration process mandated by a new federal law, according to GM chairman Ed Whitacre.

He said that "a large number" will be reinstated and that it could be "in the hundreds." Under the law signed by President Obama last month, a six-month period has been set up wherein dealers can appeal their rejection to neutral arbitrators. 

The deadline for dealers to give notice that they intend to file for arbitration is Jan. 25. The arbitration judgment is expected to come out by June 15.

When Chrysler was still in bankruptcy, it rejected 789 dealerships while GM said it would wind down 1,350 through October 2010.

Whitacre stated that GM had used a "pretty arbitrary" cut-off point in determining which dealers to reject. He admits that some mistakes were probably committed in dropping several good dealers and retaining a few bad ones.

He said that a process was used and the fate of the dealer had depended on which side of the line it fell in. He said further that it was impossible for GM to have perfect process. Nonetheless, he said that arbitration could restore good and bad dealerships. [via autonews]

Topics: gm, dealer, united states

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