General Motors Pulls Back On Dealership Cuts

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General Motors is keeping open hundreds of dealerships it had previously planned to close.

That's what GM North America president Mark Reuss tells the Associated Press. But Tom Banse reports the reprieve comes too late for some local dealers.

47 General Motors dealerships in Oregon, Washington, and Idaho received so-called "wind down" letters. That happened during the car maker's trip through bankruptcy last year.

Now GM's top management is shifting strategy. It's not winding down as much, in part to avoid costly settlements with angry franchisees.

There's no official list. But the best we can tell, the reprieve comes too late for many of the targeted GM dealers in our region. They've either closed already, been sold to a competitor or settled in arbitration.

Idaho Auto Dealers Association Executive VP Trent Wright says even if just a few Northwest dealers are saved, it's still a big deal.

Trent Wright: "They're pillars of the community and every opportunity that these dealers get to stay in business is huge for the state and huge for the community."

Wright says auto dealerships represent a big slice of the tax base and often are the go-to sponsor for local sports teams or events.

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