Good news for dealers jilted by General Motors during its bankruptcy: according to recent reports, roughly half of the franchises that applied to be reinstated will have their contracts renewed.
Out of the 1160 dealers that have fought to regain their franchises, 580 will be reinstated, Automotive News reports. Last year, GM cut 1350 dealers before it went bankrupt.
It’s a development that CEO Ed Whitacre saw coming in January when he said, “I think a large number will get reinstated. I think that’s a given. It’s in the hundreds.”
A total of 789 Chrysler dealers are also eligible to appeal their rejection notices, although at this point it’s unclear how successful they will be. GM dealers to be reinstated will receive letters as early as next week. Meanwhile, the dealerships that still need to wind down their business must do so by November.
Earlier this year, GM asked its remaining dealers to renovate showrooms, adding free Wi-Fi and remodeling entryways. The newly reinstated dealers will get to order new product immediately. Dealer relations has emerged as a greater priority, it seems, following this week’s executive shakeup.
“It’s become extremely clear to me since taking this role [as president of GM North America] that there is a better way to structure this organization,” Mark Reuss said earlier this week in a statement. “The premise of the structure is simple — a clearer marketing focus to sell more vehicles, and freeing our sales and service experts to focus on customers and dealers.”
Source: Automotive News (Subscription required)