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If you’re a General Motors dealer whose franchise was terminated as part of the company’s bankruptcy, there may be some hope left. GM plans on adding a few new retail stores around the country, and will allow some terminated dealers to apply for the new positions.
According to Greg Martin, GM’s decision to open new dealerships, after closing over 1000 stores as part of its bankruptcy, is part of the company’s ongoing analysis in dealer consolidation efforts. He said GM wants to re-establish key points in certain markets across the country. Martin declined to say how many new franchises will appear or when they will open.
To notify eligible terminated dealerships, GM sent letters inviting them to reapply for new franchises. In a letter to the U.S. government explaining the invitations, GM said it will review rejected dealership applications “in line with its normal business procedure” and will “select the proposal that it determined was the best one for that particular market.” The possible change in closings gives both rejected dealerships and those applying for new franchises an equal possibility.
According to Tammy Darvish, leader of a group of rejected dealers known at the Committee to Restore Dealer Rights, GM’s terms “are inadequate.” Darvish suggested in September that rejected dealerships be given preference over those applying for new ones, and Rep. Chris Van Hollen, assistant to House Speaker Nancy Pelosi, agrees.
Despite GM’s seeming change of heart about some of the dealerships, GM CEO Fritz Henderson said no terminated dealers would receive a change in compensation. He also said GM may restore some of the dealerships that were “accidentally terminated” as part of the quick bankruptcy.
Source: Automotive News
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