Future of 600 GM dealerships may be brighter

NEW YORK – General Motors Co. will reinstate more than half the dealerships it targeted to drop from its network.

GM executives said Friday that about 600 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the automaker.

The Detroit automaker last year told 2,000 dealerships it would revoke their franchise agreements in October 2010 as part of its restructuring. The company has said it needs to shrink the number of showrooms to keep the remaining ones healthy.

The dealerships, who say they have been treated unfairly, have been appealing the decision.

The cuts to GM's 6,000-dealer network were designed to compensate for much lower demand for cars and trucks, but some dealers have argued that lots that are still profitable are at risk, and that the automaker hasn't offered enough details about how it's choosing which businesses to shutter.

GM and Chrysler, which has slashed 789 dealers, have said they would reconsider the cuts. The decision was a compromise meant to avoid federal legislation that would require that the showrooms be kept open.

Under the revised plans, dealerships would get face-to-face reviews, binding arbitration and faster payments to help dealers slated for shutdown.

Congress-brokered talks between dealer groups and the automakers began in September. But those talks stalled over disputes about the review process for targeted dealerships and other issues. Looming over the fight has been the threat of federal legislation to deal with the closures. Lawmakers warned that if a deal wasn't reached, that legislation would move forward.

The White House has opposed the legislation over concerns that it could hurt GM's and Chrysler's efforts to rebound from their government-led bankruptcies.

___________ below is opinion______

Before the economic melt down that caused GM to burn through its sink fund, the propagandist at GE on behalf of Obama's puppetmasters had pushed for the destruction of GM dealerships. The destruction of the dealerships who were not losing money made no sense either before the economic melt down or after the economic melt down. Don't forget what Kerkorian and the rating agencies were doing to GM even before the crash happened.

Many people may not be fully aware of the degree that the powers at be were working to destroy General Motors even before the economy fell off the cliff.

To understand what has been happening you'd first have to understand what Ford and the Ford Foundation really is and what the economic game being played has really been about.

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This is opinion. If your opinion differs that is cool. Heck, I might even disagree with what I've written 30 seconds from now.