DETROIT -- General Motors says dealers who were targeted in a second round of franchise cancellations have until June 8 to appeal.
Spokesman Pete Ternes conceded there may be some confusion about whether about 250 dealerships that received termination notices this week were able to ask the bankrupt automaker to reconsider.
In light of the testimony yesterday we sent out a reminder of the wind-down review process, Ternes said.
CEO Fritz Henderson testified before a Senate committee Wednesday that about 500 of the 1,380 GM dealerships that have received termination notices so far have appealed. GM has reversed 11 decisions, he said.
The first group of 1,124 canceled dealerships were mailed termination letters on May 15. The notices said the stores would be phased out when dealers franchise agreements ended in October 2010. They had until June 1 to appeal.
One dealer said GM did not inform him of an appeal process when he received a notice Tuesday that two of his franchises would be terminated. He said he found out when he spoke to a GM representative. He asked not to be identified because he still hopes to win an appeal.
Spokesman Ternes said the latest group of canceled dealers can apply for an appeal through an e-mail addresss, [email protected]
GM will make final decisions on the appeals by June 12, when dealers must sign the wind-down agreement or face termination in bankruptcy court.
I think dealers maybe were just waiting for a personal call, Ternes said.
Ternes said some dealers won their appeals because the automakers decision to cancel was based on inaccurate information.
In other cases, certain extenuating circumstances accounted for the dealerships substandard performance and the decisions were reversed, Ternes said. He declined to be specific.
GM filed for Chapter 11 bankruptcy protection in New York on Monday.