For 661 Shuttered GM Dealerships, the Road Back Won't Be Easy
Hundreds of dealers given a second chance at keeping their General Motors franchises have about two months to prove to the company that they've met the requirements to start selling Chevrolet, Cadillac, Buick and GMC vehicles again, the Detroit Free Press reported.
Key on the to-do list: Dealers who received payments to close their GM franchises must repay the money and prove they have enough credit lined up to buy new GM cars and trucks to sell, a copy of the agreement obtained by the Detroit Free Press says.
During its bankruptcy, GM moved to close about 2,000 dealerships, saying they were not needed. Earlier this month, however, GM offered 661 of the 1,160 dealers fighting the loss of their franchises the chance to get them back.
GM, whose U.S. sales are up 13% this year, is fighting aggressively for sales as it bounces back from bankruptcy.
Though General Motors is trying to get past problems with dealers as quickly as possible, Steve LaBelle's lawsuit filed in Massachusetts shows how complicated the process is for the automaker.
LaBelle was one of the 1,160 GM dealerships to file for arbitration, to fight to keep from losing his Chevrolet franchise. In the meantime, GM allowed a dealer from a neighboring community to move into LaBelle's sales area, according to the lawsuit filed in early March.
LaBelle, whose dealership is in Bridgewater, Mass., a town about 45 minutes south of Boston, is trying to get an injunction to keep that competitor from selling new GM vehicles until his arbitration is resolved.
It's a complicated situation inherited by Mark Reuss, who became GM president of North America in December, following a management shake-up that included Fritz Henderson resigning as CEO and Chairman Ed Whitacre assuming chief executive duties.
More Industry

World EV Adoption Set to Grow
A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.
Read More →
Black Book: Weekly Market Update
Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.
Read More →
Pricing Transparency Drives Purchase Consideration
An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.
Read More →
Black Book: Weekly Market Update
Used-vehicle market depreciation was the prevailing story in the wholesale market last week.
Read More →
Smaller Is Looking Better
A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.
Read More →
U.S. EV Market Slowly Stabilizes
U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.
Read More →
Global EV Market Entering New Phase
Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.
Read More →
Black Book Weekly Market Update
The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.
Read More →
Auto Affordability in Context
Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.
Read More →
Black Book: Weekly Market Update
Automotive auction inventory increased last week, giving choosy bidders even more leeway.
Read More →