Summary Box: General Motors eases cuts, expects 900 more dealers than planned by summer
By APTuesday, June 8, 2010
Summary Box: General Motors eases dealership cuts
WHAT HAPPENED: GM’s North America President Mark Reuss says the automaker plans to have 5,000 U.S. dealers when a federal arbitration process ends this summer. The company had planned to pare its dealers from 6,000 to 4,100 as part of its bankruptcy reorganization.
WHY?: GM wants to avoid the time and expense of closing dealers, and new leadership doesn’t think it’s necessary to improve profits.
WHAT’S NEXT?: Arbitrators are still considering around 375 cases from GM and Chrysler dealers targeted for closure. The deadline is July 14.
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