GM plans to reinstate 661 of the 1,160 rejected dealerships

Article by Christian A., on August 27, 2010

General Motors Co. revealed its intentions to reinstate 661 of the 1,160 rejected dealerships that applied for arbitration to restore their franchises. This effectively scraps a nine-month plan to lower its showroom network by 40%.

According to GM executives, the company is starting settlement procedures early so as to avoid the stresses of congressionally mandated arbitration. 

On March 10, the letters of intent will start going out. The GM executives say that the length of the process could range from a few weeks to several months.

GM anticipates for this effort to be completed by mid-summer. At a conference call, Jim Bunnell, GM's general manager of dealer network support, said that this decision saves time, energy, and money.

Susan Docherty, GM's U.S. marketing chief, shared that the company had concluded that it would not be possible to arbitrate 1,100 cases in a 120-day period.

Last December, President Barack Obama had signed in a law that requires that arbitration be completed by mid-June. Arbitrators can opt for a one-month extension.

Before GM's bankruptcy reorganization last spring, there were plans to reduce its 6,150-dealership network to 3,600 by the end of this year. GM's reinstatement decision means that GM would be left with 4,500 to 5,000 U.S. dealerships. [via autonews]

Topics: gm, dealer

If you liked the article, share on:

Comments

Recommended

Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
It is not a big secret that premium customers in China have a strong penchant for luxury cars with a spacious interior. In particular, premium customers in China purchase luxury...
by - April 21, 2017
Chinese automaker Chery did not leave a good impression last time they were in Australia - due to its cheap design. But this year, Chery showcases its new Tiggo Sport...
by - April 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries