General Motors has decided to reverse its decision on closing 41 of the 2,100 dealerships it plans to shutter during its bankruptcy process. The move comes after a group of influential Congress members introduced a bill to try to force GM and Chrysler to keep dealers open.
Earlier this week, federal bankruptcy judge Arthur Gonzalez approved Chrysler’s bid to close 789 U.S. dealerships, or 25 percent. It is unclear whether Congress will be able to force the reopening of some of those closed dealerships.
So far, GM has reversed 15 cases and is now hearing hundreds of appeals from closing dealers. It has changed its position on 41 of those dealers.
GM is looking to close 3,5000 dealers by the Oct. 31, 2010. It currently has 6,200 dealers.
– By: Omar Rana
Source: Detroit News