Friday, 5 March 2010
If O's 2011 budget were put into effect as proposed, the U.S. would add $9.8 T to debt - $5.6 T in interest alone -
General Motors executives said Friday that 661 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the company.
GM last year told 2,000 dealerships it would revoke their franchise agreements in October 2010 as part of its restructuring. The company has said it needs to make the cuts to keep the remaining showrooms healthy.
Roughly 1,000 dealers sought arbitration.
The U.S. automaker will begin sending letters notifying some of the dealers who appealed closure that they now have the option remain with GM.
GM now has 5,500 dealerships; prior to bankruptcy it had 6,200.
The U.S. Treasury owns 60 percent of GM after the 2009 bankruptcy restructuring.
The dealerships have said they were treated unfairly and have been appealing the decision to shut them for months.
Read more -http://www.cnbc.com/id/35727441