GM to Reestablish Up to 50 Dealerships

Wants me, wants me not... This is the predicament some of the dealerships targeted for closure by American manufacturer GM find themselves in now, as it would appear the carmaker is now looking into filling some 30 to 50 open points in its dealership network. The reason behind the change of heart? After the time it entered bankruptcy, GM said it will only close under performing locations. But now, it comes back and clarifies a bit their decision. According to GM's vice president of US sales, Mark LaNeve, the closed dealerships were poor-performing businesses in good locations.
Should GM discover consumer interest runs high in these locations, the dealerships will be reestablished. Of course, the former owners will take precedent in submitting the first proposals and have the first shot at owning the new GM dealerships, again, despite the fact their were considered bad managers.

"Dealers in the areas that were wound down will get first right of proposal," LaNeve was quoted as saying by Autonews. "They'll be able to submit a business plan to become the dealer."

What do dealers have to say? Of course, most of them are happy to get a second chance. "We have an established profitable business in one of the worst downturns in the economy. I think we're a critical location, but not necessarily a critical location for domestic new-car sales," Tom Thorstad from Madison, Wisconsin told the source.

The reestablishing of the dealerships will begin this year and continue throughout 2010. According to Joe Chrzanowski, GM's executive director of dealer network planning and investments, anyone can apply for a store.

"If there are other dealers in that market who are interested, we'll let them submit, too. We won't accept 200 proposals on a store; they have to be legitimate proposals. There'll be a filtering process," he said.


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