The tide turning decision has been taken after GM has provided dealers with the opportunity to submit data supporting a plea to reverse the decision, Autonews reported. The 500 dealerships now under consideration are among the initial 1,100 who have submitted such appeals, according to spokesman Pete Ternes. "There are still close to 500 that they're looking at more deeply," Ternes said.
Even if it has been asked by the government to provide the list of dealers targeted for closure, GM has not yet done so. The company didn't make public the names of those 30 who have escaped the axe either. Still, the spokesman says a final decision regarding the dealerss future will be taken by the end of the week.
Yesterday, GM sent out 4,100 addendum letters to its surviving dealers. According to the new deal, GM has agreed to meet with each of the 4,100 dealers in the first quarter of 2010 and discuss objectives set for each and every one of them. The objectives will be, as Mark LaNeve, GM's sales chief, told the source, reasonable.
Nearly 90 percent of GM dealers have signed or verbally agreed with the participation agreements, while almost 75 percent have done so with the wind-down agreements. These final developments have tempered NADA, who now believes the revised Participation Agreement addresses the majority of dealer concerns.
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