DETROIT, MI (WOIO) – General Motors executives announced Friday that 600 out of the 1,100 dealerships seeking to stay with GM will receive letters giving the option of staying with the automaker.
At the Cleveland Auto Show, local dealers were hopeful they'll get a second chance. "I had sixty-two employees. I'm down to forty-five. I transferred them to another dealership, but business has dropped by 60%" said GM dealer Nick Abraham.
According to the auto giant's website Saturday, "General Motors is taking a major step toward its goal of creating positive, lasting relationships with its dealers."
"GM carefully reviewed each of the approximately 1,100 dealer reinstatement claims that were filed with the American Arbitration Association. We conducted these individual reviews, keeping in mind our goal of moving quickly and effectively to complete the overall arbitration process, and determined that we would send more than 600 Letters of Intent to the involved dealers. The Letter of Intent contains our usual core business criteria. This action will allow these 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," said Mark Reuss, president, GM North America. "The arbitration process creates uncertainty in the market. We believe issuing these Letters of Intent is good for our customers, our dealers and GM."
The exact dealerships that received this new lease on life are unavailable at this time.