GM May Save Some Local Dealerships

General Motors said on Friday afternoon it will not close 600 dealerships nationwide it had said would be dropped from its network.

GM executives said Friday that about 600 dealerships out of the1,100 seeking to stay with GM will receive letters giving them the option to remain with the automaker.

“GM carefully reviewed each of the approximately 1100 dealer reinstatement claims that were filed with the American Arbitration Association,” the company said in a statement.

Crain’s Detroit said the letters will go out next week.

GM last year told 2,000 dealerships it would revoke their franchise agreements in October 2010 as part of its restructuring. The company has said it needs to shrink the number of showrooms to
keep the remaining ones healthy.

The dealerships, who say they have been treated unfairly, have been appealing the decision.

“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,” said Mark Reuss, president, GM North America. “The arbitration process creates uncertainty in the market. We believe issuing these Letters of Intent is good for our customers, our dealers and GM.”

Locally, the damage may already be done.

The web site Edmunds.com tracks the status of dealerships who received termination letters from GM last year.

Read National List Of Dealerships Who Got 2009 Letters

Of the 16 dealerships locally, Edmunds says four have already closed entirely, two shur down Pontiac sales and another seven are Saturn dealers.

Saturn is expected to be discontinued as a brand this fall.

List Of Local Dealers From Edmunds.com Of 2009 List

Fred Beans Buick of Limerick
J.L. Freed and Sons, Lansdale
O'Neil Pontiac (CLOSED) WARMINSTER, PA
Saturn of Doylestown (CLOSED)
Saturn of Jenkintown
Saturn of Philadelphia
Saturn of Reading
Saturn of Route 33
Saturn of Trevose
Saturn of West Chester (CLOSED)
Videon Chevrolet, Newtown Square, Pa
Bobbitt Pontiac (CLOSED Pontiac only), Salem, NJ
Saturn of Mt Laurel
Saturn of Toms River
Kent County Pontiac (CLOSED Pontiac only)
Saturn of Newark (CLOSED)