GM to Reinstate 661 Dealerships
NEW YORK (
) --
General Motors
will reinstate 661 dealerships it had planned to drop, according to published media reports.
GM executives said Friday that the dealerships will receive letters that give them the option of remaining open, according to the
Associated Press
. The dealers will have 10 days to reply to the letters and 60 days to meet a set of requirements that would allow them to stay in the automaker's sales network, the
AP
reported.
Last year GM told some 2,000 dealers it would not renew their franchise agreements when they expire this October.
But dealers complained, saying GM hadn't adequately explained how it had decided which dealerships to close, and last month Congress passed a law requiring an appeals process, the
AP
noted.
Some 1,100 dealerships have appealed GM's decision to drop them, and GM said that by sending out the letters it will save time from having to negotiate with all the dealerships that made appeals, the
AP
reported.
GM has about 6,000 dealers in its network.
This article was written by a staff member of TheStreet.com.
