DETROIT -- General Motors Co. has decided to allow rejected dealers who want to close before Jan. 1 to do so without penalty.
In June during its stint in U.S. Bankruptcy Court, GM targeted about 1,300 dealerships for closure.
Dealers who signed the termination agreements were offered a lump-sum payment. In return, the dealers agreed not to order new vehicles and to remain in business until at least Jan. 1.
Today, GM decided to let dealers who want to terminate before Jan. 1 to do so without jeopardizing the payment.
Were trying to be as accommodating as possible with them, said GM spokeswoman Susan Garontakos. We are starting the process with them.
The federal governments cash-for-clunkers program has reduced inventory at many dealerships. Garontakos said about 50 to 60 dealerships have asked to terminate before Jan. 1 for various reasons.
They have to request an early wind-down, Garontakos said. We wont go out there and ask them or pressure them. But if they request it, we are working with them on that.
GM is offering some dealerships $100,000 to $1 million to wind down their operations. For Pontiac-only franchises, GM is offering only $10,000 to $200,000.