GM to reinstate 20-25 dealers in N.C.

Posted March 8, 2010

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— Twenty to 25 North Carolina dealerships are among the 661 dealerships nationwide that General Motors Co. plans to reinstate, the North Carolina Automobile Dealers Association said Monday.

GM cut its franchise ties with 1,160 dealers nationwide last fall as part of its bankruptcy proceedings in an effort to compensate for much lower demand for cars and trucks. Some dealers have argued that lots that were still profitable were cut, and that the automaker didn't offer enough details about how it's choosing which businesses to shutter.

Congress mandated hearings on the dealers complaint late last year. All of those that are being reinstated were involved in that arbitration.

GM would not offer any details on Friday about which dealerships it was reinstating and where they are located. It said it chose the 661 based on a variety of criteria, including sales and other business factors.

North Carolina dealers have already begun to receive phone calls from GM representatives about reinstatement letters that could come as early as this week, NCADA President Robert Glaser said.

“This is huge for those North Carolina dealers who are being reinstated,” Glaser said in a statement. “These dealerships will be able to rehire employees and once again start contributing to their communities, sponsoring Little Leagues and supporting local charities.”

In 2009, North Carolina lost an estimated 50 GM dealerships as a result of the GM bankruptcy. While a few of those dealerships have already closed their doors, the majority have been operating under a “wind-down” agreement with GM.

“This has been an extremely difficult period for our franchised dealers and their employees,” Glaser said. “We are thankful that GM is taking steps to reinstate dealers and we believe this is an important step in the recovery of the auto industry."


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  • SME2 Mar 9, 2010

    Get over yourselves people. EVERY automaker has recalls. Toyota has had several lately, not just the major one. I suppose you'd like it if they never had them and you could die in peace, unregulated.-RandolphBloke

    I can't remember the last time a GM, Ford or Chrysler recall was due to a few hundred deaths cause by their vehicles. The ford recall was due to driver neglegence because they did not pay attention to the air pressure in their tires.

  • Nikka Mar 9, 2010

    There are a glut of GM dealers, what they need to do is stop duplicating efforts... like selling the same car under five different brands. Simplify things and profits will follow.

  • 6079 SMITH W Mar 8, 2010

    Its General Motors, and Toyota AIN'T going away.....maybe its time to lay off of that "Haterade", which seems to have much more of a mind-altering quality than "Kool-aid"......anybody that thinks getting rid of Rick "don't have a clue" Wagoner was a bad idea hasn't been paying attention as to why GM was on the rocks to begin with.

  • whatusay Mar 8, 2010

    As soon as Government Motors drives Toyota out of business they will have a better chance of survival.

  • 6079 SMITH W Mar 8, 2010

    Saturn is dead.....a shame it is, too. they are really good cars for the money. If only some "investor" would take the division and run with it, instead of using their money to run up energy stocks. Greed: its whats for dinner in America.

  • Tax Man Mar 8, 2010

    So does this mean Saturn is coming back? I have 3 of them and swear by them.

  • 3779LRRP Mar 8, 2010

    Whoops! Hit the send button before I was finished. Check the above post. Same goes for Buick buyers, Ford buyers and so on. I've always been a Ford man. But I have a Chrysler and a Nissan. As well as three Fords.

  • 3779LRRP Mar 8, 2010

    People who buy Chevrolets probably have been doing that all their liv. Kinda like a cult following

  • csplantlover Mar 8, 2010

    Why are you going to reinstate dealerships when they failed for a REASON???

  • 6079 SMITH W Mar 8, 2010

    My comment was about Chrysler, Vasco da Gama...and that the loan did help them turn things around....and I made the original comment to point out that no one used the term "socialism" back then when they were bailed out. Continue to sail along on the other side of the planet.