GM reinstates more than 600 dealerships

March 8, 2010

March 8, 2010—General Motors Corp. announced Friday it intends to reinstate more than 600 dealership franchises.

GM reviewed about 1,100 dealer reinstatement claims that were filed with the American Arbitration Association. GM sent a letter of intent to more than 600 reinstatement claims, which will allow those dealers to conduct normal dealership operations as soon as they comply with the terms of the letter of intent.

“We are eager to restore relationships with our dealers, and get back to doing what we do best—selling cars and taking care of customers,” Mark Reuss, GM North America president, said in a statement. “The arbitration process creates uncertainty in the market. We believe issuing these letters of intent is good for our customers, our dealers and GM.”

Ed Tonkin, chairman of the National Automobile Dealers Association, said the announcement by GM is a significant move forward in advancing the state of dealer relations.

"We appreciate the good faith effort that GM is showing and hope that this carries forward in its continuing settlement and arbitration discussions with the remaining wind-down dealers,” Tonkin said.

Visit gm.com for more information.

Sponsored Recommendations

Best Body Shop and the 360-Degree-Concept

Spanesi ‘360-Degree-Concept’ Enables Kansas Body Shop to Complete High-Quality Repairs

ADAS Applications: What They Are & What They Do

Learn how ADAS utilizes sensors such as radar, sonar, lidar and cameras to perceive the world around the vehicle, and either provide critical information to the driver or take...

Banking on Bigger Profits with a Heavy-Duty Truck Paint Booth

The addition of a heavy-duty paint booth for oversized trucks & vehicles can open the door to new or expanded service opportunities.

Boosting Your Shop's Bottom Line with an Extended Height Paint Booths

Discover how the investment in an extended-height paint booth is a game-changer for most collision shops with this Free Guide.