GM Ends Dealership Restructuring

Bankrupt American manufacturer GM announced yesterday it has completed the restructuring process of its dealership network. According to the company, only 30 of its dealers have declined to sign agreements to either shut down or continue with the new GM, Autonews reported. The 30 will be put, together with the old GM, into bankruptcy and will be terminated immediately.

Out of the 4,100 dealers who received the revised participation agreement, nearly 100 percent have signed, says GM. Out of the 1,138 who got the short straw, 98 percent have come to terms with their faith and agreed with the wind-down.

"Every GM dealer has now been contacted and is in receipt of the appropriate documents; there is no need for further wind-down or participation agreements. Our network restructuring process … is complete," Mark LaNeve, GM's sales vice president said.

Out of the 846 appeals made by dealers which have received wind-down agreements, GM reversed their decision on almost 60 dealers, after the processing of the requests ended. The main reason behind the change of heart was incorrect dealership financial data, LaNeve added.

As for the dealers, some of them are still to solve some issues with GM. According to Duane Paddock, GM's National Dealer Council (NDC), the dealers who made it to the other side will get all of NDC's support. This doesn't mean though that the fight is over.

"In no way is the National Dealer Council agreeing with or supporting General Motors' decision to close any dealerships. There is probably nothing I can say to make you feel any better. I can only assure you we had an objective and fair process, and we will continue to work hard to make this transition as smooth as possible."