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GM to reverse closing of 41 dealerships
GM to reverse closing of 41 dealerships
Posted Thursday, Jun 11, 2009, 1:06 pm in Employee News
General Motors Corp. has agreed to reverse its decision to close 41 of the 2,100 dealerships it plans to shutter in bankruptcy, as pressure mounts on automakers to do more for their dealers, The Detroit News reported.
A group of influential members of Congress, including House Majority Leader Steny Hoyer, D-Md., introduced a bill this week to try to force GM and Chrysler Group LLC to keep dealers open, the News said. On Tuesday, a federal bankruptcy judge agreed to allow Chrysler to close about 25 percent of its nearly 3,200 dealerships—or 789. Hoyer acknowledged that it is unclear if Congress would be able to force the reopening of those dealerships, the paper said.
As of Tuesday, GM had reversed itself in 15 cases, the News said. It has now heard hundreds of appeals from closing dealers, and changed its position on 41. According to the News, GM expects to have between 3,500 and 3,800 dealers by the end of 2010, compared to about 6,200 today.
The bill, called the Automobile Dealer Economic Rights Restoration Act of 2009, would restore the economic rights of automobile dealers to protect jobs, workers and small-business owners, the paper said. It has 40 House co-sponsors, including Rep. Thaddeus McCotter, R-Mich., the story said. (The Detroit News)
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Rick
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