DETROIT, March 29 (UPI) -- General Motors Co. has told hundreds of dealerships they must agree to certain conditions before reopening and selling the U.S. automaker's cars again.
GM closed about 2,000 dealerships last year as part of its bankruptcy reorganization plan. With sales up 13 percent this year, the company has told 661 of the closed dealerships it is ready to offer them new contracts, but not without the franchises first establishing credit and proving they have working capital.
In many cases, dealerships must also agree to renovate their franchises, and all of them were informed they would have to return any money GM gave them to help them to wind down their businesses, the Detroit Free Press reported Monday.
Dave Kring, an auto dealer from Petoskey, Mich., said, "We're just waiting for the switch to be flipped so we can start ordering."
But not all dealership owners expressed satisfaction with the deal.
"I'm extremely frustrated," said Bridgewater, Mass., dealer Steve LaBelle.
LaBelle said that although he filed an arbitration claim with GM to get his dealership reopened, the automaker allowed another dealership to expand into his former sales area.
He is now suing to get a court injunction to stop the other dealership from selling GM products until his own arbitration process is complete.
