General Motors CEO Fritz Henderson revealed today that 95 percent of the company’s eligible dealers have agreed to remain with GM once the Detroit automaker emerges from Chapter 11 bankruptcy. GM recently sent out a participation agreement to its remaining dealers, with those not willing to sign set to be lumped with the ‘bad’ GM in bankruptcy court.
Additionally, Henderson revealed that about 90 percent of the company’s 1,089 eliminated dealers have signed or verbally agreed to GM’s wind down contract. Those dealers not will to ink the wind down agreement will be cut off from GM funding over the next 17 months.
“Our dealership consolidation is not just about saving money, but about creating opportunity and revenue growth,” Henderson told a House of Representatives subcommittee.
GM dealers had until today to commit to the agreements.
GM originally had target to cut 1,124 dealers from its U.S. network but decided to reverse its decision on 35 dealers. In all, GM has received 856 dealer appeals, according to Automotive News.
