Back on the Road

Coming on the heels of better-than-expected sales figures, General Motors said Friday afternoon that it would send letters of intent to more than 600 dealers, saying they can continue to sell its vehicles.

In a statement on its website, GM didn’t name the dealerships, but said it had reviewed claims for reinstatement from 1,100 dealerships and made its choices from there.

“We are eager to restore relationships with our dealers and get back to doing what we do best—selling cars and taking care of customers,” said Mark Ruess, president of GM North America.

In June 2009, the automaker, as part of its bankruptcy reorganization, decided to drop 2,300 of its dealerships through a combination of not renewing franchise agreements, as well as attrition and other factors.

Who gets reinstated remains a secret—for now. The company said it notified 1,323 dealerships that they would not have their franchise agreements renewed, but declined to publicly identify them.

GM also said the dealerships would be able to conduct normal operations once they comply with criteria set forth in the letters of intent.

GM filed for Chapter 11 bankruptcy June 1, 2009, and emerged 40 days later as a private company, 61 percent owned by the federal government.