Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

GM Has 4,500 Stores After Winning 63% of Arbitration Cases

August 5, 2010
2 min to read


WASHINGTON - General Motors Co. prevailed in 39 of its arbitration cases and lost 23 to rejected dealerships as it scales down to about 4,500 stores by November, GM spokeswoman Ryndee Carney said.


GM announced final results of a process that began with enactment of a federal arbitration law in December and ended with final decisions handed down last month on claims by dealers tagged for elimination during the company's restructuring, reported Automotive News.

Ad Loading...


Most of the 1,176 arbitration claims filed in January never reached a decision, the company said in a statement. GM offered letters of intent that spelled out conditions for reinstatement to 702 dealerships or 60 percent of those that filed claims.


With 23 dealerships prevailing in arbitration, GM offered letters of intent to a total of 725 stores, Carney said in an interview. That's 62 percent of the dealerships filing claims.


Most if not all recipients of letters of intent have signed them, Carney said. These stores can start selling cars as soon as they meet the conditions in the letters.


“A strong, profitable dealer network selling and servicing the world's best cars and trucks is a genuine market advantage,” GM North America President Mark Reuss said in the statement.


GM also said today that it had reached 408 individual resolutions with dealers that filed arbitration claims.

Ad Loading...


These resolutions consist of settlements, an undisclosed number of dealership continuations that will receive letters of intent, and claim withdrawals and dismissals, Carney said.


Most of the 408 resolutions involve dealer terminations, GM said.


Still, dealer lawyers have said GM paid cash settlements in dozens of these cases -- sometimes as much as several million dollars.


During the summer of 2009, GM notified 2,064 dealerships of plans to terminate at least one of their franchises by October 2010. GM's goal was to pare its dealer network from 6,049 stores to about 3,600.


That network is now likely to be about 25 percent larger than originally planned, with about 900 more stores -- making a total of about 4,500.

Ad Loading...


While GM declined to give a dealership breakdown, Carney did provide a breakdown by franchise for the new network.


In November, there will be about 3,100 Chevrolet franchises, 2,100 Buick franchises, 1,750 GMC franchises and 925 Cadillac franchises, she said.


About 1,000 of the continuing stores are scheduled for “a major facilities upgrade” by the end of this year, the statement said. Included in the upgrades will be work areas with phone and laptop computer outlets, Wi-Fi and a cafe area with refreshments.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →