DETROIT, Michigan - January 8, 2010 - General Motors Co. said today that 2,000 of its dealers will be eligible for arbitration to appeal their planned closings.
GM confirmed it won't fight the bill Congress approved last month that grants the dealers it ordered to close by October, as well as 789 Chrysler dealers, the right to an independent review.
By January 15, GM will provide dealers with a letter that explains the reasons why the dealer received a wind-down agreement. Dealers who sell only one of the four closing brands - Saturn, Saab, Hummer or Pontiac - are ineligible for the appeal process.
Dealers who want to file for reinstatement must do so through the American Arbitration Association and commence arbitration by January 25. Under the law, decisions must generally be made by June 14.
Dealers who may be reinstated will receive a letter of intent within seven days of the arbitrator's decision. Arbitration will be binding and final.
GM is taking a much softer line toward its dealers than it has in the past. "There are pros and cons of reinstating dealers, and it is hard to generalize about this issue," the company said in a statement issued today.
GM noted that on the upside, the company "will probably have more retail outlets to sell GM product." But on the downside, restoring many dealers could reduce sales and profitability for all dealers, it said.
GM confirmed it won't fight the bill Congress approved last month that grants the dealers it ordered to close by October, as well as 789 Chrysler dealers, the right to an independent review.
By January 15, GM will provide dealers with a letter that explains the reasons why the dealer received a wind-down agreement. Dealers who sell only one of the four closing brands - Saturn, Saab, Hummer or Pontiac - are ineligible for the appeal process.
Dealers who want to file for reinstatement must do so through the American Arbitration Association and commence arbitration by January 25. Under the law, decisions must generally be made by June 14.
Dealers who may be reinstated will receive a letter of intent within seven days of the arbitrator's decision. Arbitration will be binding and final.
GM is taking a much softer line toward its dealers than it has in the past. "There are pros and cons of reinstating dealers, and it is hard to generalize about this issue," the company said in a statement issued today.
GM noted that on the upside, the company "will probably have more retail outlets to sell GM product." But on the downside, restoring many dealers could reduce sales and profitability for all dealers, it said.