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GM Forced To Reinstate 600 Dealerships

From a mildly annoyed Associated Press:

GM to reinstate 600 dealerships slated to be cut

By Dan Strumpf, AP Auto Writer Sat Mar 6

NEW YORK – General Motors Co. will reinstate 661 dealerships it sought to drop from its sales network.

GM executives said Friday that the dealerships — more than half of those seeking to stay with the automaker — will receive letters giving them the option to remain open. GM said it would not have enough time to negotiate with all 1,100 dealerships that appealed the automaker’s decision to close them within a four-month window imposed by the federal government.

"By doing this we save a lot of time, energy and dollars," said Jim Bunnell, GM general manager of network support, saying the company wished to avoid a "very large arbitration process."

As part of its restructuring, GM last year told about 2,000 dealerships it would not renew their franchise agreements once they run out in October 2010. But the dealerships have said GM treated them unfairly, and last month Congress passed a law requiring an appeals process for the dealers.

GM’s decision to keep the additional showrooms open effectively shrinks the number of appeals it has to contend with. Arbitration hearings for the dealers who didn’t get offers but still want to stay with GM will begin later this month.

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 would not offer any details on Friday about which dealerships it was reinstating and where they are located. It said it chose the 661 based on a variety of criteria, including sales and other business factors

A spokeswoman with Chrysler Group LLC, which has cut 789 dealers, said the company was preparing a statement in response to questions about whether they also intended to reinstate dropped dealerships. Chrysler showrooms slated for closure are also appealing to stay open, though it remained unclear how many

The White House can’t even run a couple of car companies, and now they want to run every aspect of our lives through their ‘healthcare reform.’

Of course the auto bailouts were only ever about bailing out the UAW’s healthcare and pension funds.

None of these other details ever mattered much.

This article was posted by Steve on Saturday, March 6th, 2010. Comments are currently closed.

4 Responses to “GM Forced To Reinstate 600 Dealerships”

  1. Rusty Shackleford says:

    Had they not violated contract law to begin with, they wouldn’t have had to contend with so many appeals. Overreaching on the part of the government yields an equal but opposite reaction from the people.

  2. canary says:

    The reopening dealers will get the small cars with steering problems & brake skidding problems.

  3. TwilightZoned says:

    “But the dealerships have said GM treated them unfairly,…”

    Just out of curiosity, I’d like to know how many of the dealership owners to be closed were found to have donated to the Republican party?

  4. proreason says:

    “Of course the auto bailouts were only ever about bailing out the UAW’s healthcare and pension funds.”

    All of the union’s pension funds are officially underfunded to the extent that they cannot recover by objective measures.

    That is the hidden force behind a lot of what is happening today….card check, health scare, growth of government.

    They need more members to keep the Ponzi scheme going.

    You wouldn’t think that the gilded pension promises to a couple of million people would be one of the two most important factors politically in the country, but you would be wrong.

    (The other most important factor is Obamy’s bone-deep, pathological commitment to Marxism. He has to justify his megalomania, you know.)

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