Hundreds of dealers given a second chance at keeping their General Motors franchises have about two months to prove to the company that they've met the requirements to start selling Chevrolet, Cadillac, Buick and GMC vehicles again, the Detroit Free Press reported. Key on the to-do list: Dealers who received payments to close their GM franchises must repay the money and prove they have enough credit lined up to buy new GM cars and trucks to sell, a copy of the agreement obtained by the Detroit Free Press says. During its bankruptcy, GM moved to close about 2,000 dealerships, saying they were not needed. Earlier this month, however, GM offered 661 of the 1,160 dealers fighting the loss of their franchises the chance to get them back. GM, whose U.S. sales are up 13% this year, is fighting aggressively for sales as it bounces back from bankruptcy. Though General Motors is trying to get past problems with dealers as quickly as possible, Steve LaBelle's lawsuit filed in Massachusetts shows how complicated the process is for the automaker. LaBelle was one of the 1,160 GM dealerships to file for arbitration, to fight to keep from losing his Chevrolet franchise. In the meantime, GM allowed a dealer from a neighboring community to move into LaBelle's sales area, according to the lawsuit filed in early March. LaBelle, whose dealership is in Bridgewater, Mass., a town about 45 minutes south of Boston, is trying to get an injunction to keep that competitor from selling new GM vehicles until his arbitration is resolved. It's a complicated situation inherited by Mark Reuss, who became GM president of North America in December, following a management shake-up that included Fritz Henderson resigning as CEO and Chairman Ed Whitacre assuming chief executive duties.
For 661 Shuttered GM Dealerships, the Road Back Won't Be Easy
More Industry

Auto Loan Outlook Shows Cracks
Recent survey data shows that the overall demand for auto loans is down, but the demand for subprime loans is up as consumers face economic uncertainty and affordability pressures.
Read More →
Lone Star State Store Sells
The Mitsubishi location moves from one Texas automotive group to another, continuing this year’s spate of brisk buy-sell activity.
Read More →
Mitsubishi Gallery Makes Progress
As part of its 2030 business plan, Mitsubishi's North America arm will soon open its first 'gallery' store in Tennessee, where customers can learn about the brand, vehicles and technology.
Read More →
Senators Propose Chinese Connected Car Ban
Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.
Read More →
Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Read More →
Bad Credit Tanks Attainability
A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.
Read More →
A New Consumer Culture in the Auto Dealership
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
New-Vehicle Sales Down
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
Will Extended-Range Autos Make Inroads?
EREVs, also known as ‘series hybrids,’ may catch on in the U.S., where they currently have barely a toehold, as automakers tilt away from some purely electric models and consumers crave more range.
Read More →
Used Autos Selling for More
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →