[Guest post by DRJ]
Prior to its bankruptcy, the Obama Administration pressured GM officials to make “faster and deeper cuts” in closing over 2,000 of its franchise dealers. However, Congress established an arbitration process to review the terminations after a “firestorm” erupted over the dealer closures.
Approximately 1,100 dealers met the deadline to file for arbitration and, having reviewed the initial filings, GM is offering to renew 661 dealers:
“In May, as the Detroit giant worked its way through bankruptcy, GM notified 2,000 dealers that they would lose their franchise license in October 2010. But Congress demanded that the company give dealers an appeal process, and 1,100 of those targeted for shutdown met last month’s deadline to file for arbitration in an attempt to regain their license.
The arbitration hearings will take place over the next three months, but GM’s initial review of the applications convinced it to go ahead and offer more than 600 dealers their franchise back, the company said. Those affected have been sent a “letter of intent” and will be allowed to resume normal operations if they comply with the letter’s terms.”
Auto dealer groups claim the GM and Chrysler terminations cost as many as 169,000 workers their jobs. Reinstating these dealers means some of those jobs will come back, although almost a year later.
Who says government is inefficient?