DETROIT -- General Motors says that its dealership restructuring process is complete, and that 30 retailers have refused to sign agreements to either shut down or continue with the entity that emerges from bankruptcy.
The 30 will be put in with the "old" GM in U.S. Bankruptcy Court and likely will face immediate termination, Mark LaNeve, GM's vice president of vehicle sales, service and marketing, has said.
Of the 4,100 GM dealerships that received participation agreements, "almost 100 percent" have signed and returned those documents, LaNeve told dealers in a letter Wednesday.
As for the 1,138 dealerships who got "wind-down" agreements to close shop, 98 percent have signed and returned agreements, LaNeve said. GM had 846 appeals to the wind-down decisions. It has finished reviewing all of them and has reversed almost 60, LaNeve says.
The main reason for reversals was incorrect dealership financial data. Those data skewed GM's scoring process in selecting dealerships for closure, he said.
"Every GM dealer has now been contacted and is in receipt of the appropriate documents; there is no need for further wind-down or participation agreements," LaNeve said. "Our network restructuring process is complete."
Duane Paddock, chairman of GM's National Dealer Council, said the group will do what it can to help surviving dealers improve sales and profits.
"But in no way is the National Dealer Council agreeing with or supporting General Motors' decision to close any dealerships," said PaddockAs for dealers being terminated, LaNeve said: "There is probably nothing I can say to make you feel any better. I can only assure you we had an objective and fair process, and we will continue to work hard to make this transition as smooth as possible."