GM to open a number of new stores and help rejected dealers

Article by Christian Andrei, on August 27, 2010

General Motors Co. has been inviting rejected dealers to apply for new dealerships. However, it is a plan that a group of rejected dealers known as the Committee to Restore Dealer Rights has described as inadequate.

GM spokesman Greg Martin said that the company is re-establishing select points in various markets around the country as part of the ongoing analysis of its dealer consolidation efforts.

Martin didn't say which locations are being considered or when these new dealerships are expected to open. He also declined to say how many franchises would be awarded or of what criteria will apply.

He did say that any dealer whose store is set to be closed can submit a proposal. Martin said that this information was mentioned in a letter that GM sent to congressional leaders in September.

According to the letter, GM will review all rejected dealer's applications "in line with its normal business procedures."

GM will also be selecting the proposal that is found to be the "best one for that particular market."

Tammy Darvish, a leader of the group of rejected dealers, confirmed that in the past few weeks, at least a dozen rejected dealers have received letters from GM inviting them to apply for new dealerships. [via autonews]

Topics: gm, dealer, united states

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