DETROIT -- General Motors has reversed its decision to wind down about 30 dealerships and is reviewing about 500 more requests from dealerships for a reversal.
On May 15, GM sent termination letters to 1,124 dealerships. Since filing for Chapter 11 reorganization June 1, the company has added about 250 more stores to its list of those to cut.
GM wants to reduce its dealerships from about 6,000 to an ultimate goal of 3,600 to 3,800. So far, 4,100 dealerships have been offered a chance to participate as surviving dealerships.
GM set up a process allowing a dealer with a franchise targeted for termination to submit data supporting a plea to reverse the decision. So far more than 500 dealerships have submitted appeals, GM spokesman Pete Ternes said.
Nearly all 1,100 dealers filed an initial appeal, according to GM figures.
There are still close to 500 that theyre looking at more deeply, Ternes said.
GM has not made public the names of dealerships that received termination letters, and it did not identify the 30 that won a reprieve.
One dealer who got a reprieve is Paul Walser, according to the Star Tribune newspaper in Minneapolis. Walser will get to keep his Bloomington Buick-Pontiac-GMC store open. The news came Monday night after Walser and his elected officials lobbied GM against the closure, the newspaper reported.
Walser declined to comment to Automotive News, citing a confidentiality agreement with GM.
Ternes said he expects GM will make final decisions by the end of the week.