Lost GM dealerships may be restored

DETROIT (AP) — Hundreds of the 1,350 General Motors Co. dealers who lost their franchises last year could see them restored in a congressionally mandated arbitration process that begins later this month, the company’s interim CEO said Wednesday.

CEO and Chairman Ed Whitacre Jr. also said that new Chief Financial Officer Chris Liddell is a candidate for the CEO post. And Whitacre said he’s not confident about selling the Swedish Saab brand.

In a wide-ranging talk with reporters at GM’s Detroit headquarters, Whitacre also predicted that GM would be profitable this year, although he said that was dependent on the economy and other factors.

GM had planned to close the 1,350 dealerships this year in an effort to dump poor performers and better align its dealer base with much lower consumer demand for autos. In many cases, GM had dealerships too close to one another and competing too much on price, the company said.

Congress passed legislation late last year that forces GM and Chrysler Group LLC, which shed 789 dealers last year, to give dealers a chance to appeal closure decisions. Both companies went through bankruptcy protection in 2009 and are receiving government aid.

Whitacre said the company had a “pretty arbitrary cutoff point” for shedding dealers, and that it probably made mistakes in getting rid of some of them.

When pressed, he said “hundreds of dealers” may be closer to 100 than a thousand, but it’s a “substantial number.”

For the full story, read the business page in Thursday's Vindicator or on Vindy.com