Jobs! GM intends to reinstate more than 600 dealers

[babylonsister]

http://thehill.com/blogs/blog-briefing-room/news/85229-gm-will-reinstate-over-600-dealerships


GM intends to reinstate more than 600 dealers
By Michael O'Brien - 03/05/10 03:35 PM ET


General Motors announced Friday it intended to reinstate more than 600 dealerships it had shuttered during its bankruptcy last year.

GM said that after reviewing 1,100 arbitration claims, the automaker had determined it could reopen a substantial number of dealerships, and sent letters of intent to more than 600 of them.

“We are eager to restore relationships with our dealers, and get back to doing what we do best — selling cars and taking care of customers," GM North America President Mark Reuss said. “The arbitration process creates uncertainty in the market. We believe issuing these letters of intent is good for our customers, our dealers and GM.”

GM had closed roughly 2,000 dealerships during its restructuring and bankruptcy in 2009. The process was financed and directed by the U.S. government, which poured tens of billions in bailout funds into the company in exchange for an equity stake.

Dealerships in congressional districts across the country were terminated during the process, leading a bloc of lawmakers to push for the arbitration process to reinstate a number of dealerships.

"These actions secure the employment of thousands of workers across America and will help ensure that we have a robust dealer network as our car companies regain their strength," said House Majority Leader Steny Hoyer (D-Md.), who led a congressional effort to force GM into arbitration.

"I look forward to seeing dealers reopen in the weeks to come," Hoyer added.

[HughMoran]

1. Can't be true. I read on DU that the economy cannot recover ever again

Ever.

Look, I read it on DU, so it must be true.

[gmoney]

3. Well, the new dealerships will be run out of FEMA trailers

And will only employ imported H-1B child labor, who will be forced to use food stamps to buy candy and lobster, with an Olive Garden voucher every year on Dick Cheney's birthday.

[babylonsister]

4. Bwhahaha! I knew there'd be something just so wrong about this!

:rofl:

[Captain Hilts]

2. The cash for clunkers, etc. was a great policy. nt

[flvegan]

5. If it happens, that's GREAT news!

[Subdivisions]

6. If.

There's so much flip-flopping going on these days it's hard to know what to believe, much less what to hope for.

[earth mom]

7. Who the hell has any money to buy a car?

:wtf:

[gmoney]

8. Well, they gotta be READY for when that day arrives

When we all wake up and realize it was just a bad dream, the first thing we'll wanna do is go buy new Chevies (Chevys? Chevy's? Chevrolets!)

Plus, since they're now gubmint owned, Obama gonna make us all buy one to stim-u-late th'conomy

[Name removed]

9. Deleted message

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[CBR]

10. My husband and I just purchased a car in November -- a GM vehicle.

He teaches Pre-K and I am in grad school, so no big bucks here.

[mvccd1000]

11. Bad idea, IMO

I think there were something like 22 GM dealers within a 20 minute drive of my house last time I checked. That's beyond ridiculous. They were averaging sales of 1 vehicle per day, which simply will not sustain a business.

I worked in testing and development for GM for several years, and we were informed back in the late 90s that GM felt like it needed to shed at LEAST 25% of the dealerships (and ideally more) just to stay afloat.

It's a problem they've realized for a long time, and I had high hopes that they had finally managed to pull it off during the government-mandated restructuring.

I'm sad to see that they're simply going right back into the same business model that led them to bankruptcy the first time. :(