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General Motors reinstating more than 580 rejected dealerships

GM Dealership Sign

General Motors is preparing to reinstate most of the rejected dealerships that applied for arbitration, sources familiar with the matter said.

General Motors will restore more than 580 of the 1,600 dealerships that filled for arbitration to get their franchises back.

GM plans to contact the affected dealers via letter as soon as next week. GM is close to finishing the process of selecting dealerships to reinstate outside of arbitration, one source said.

The remaining dealerships GM intends to wind down before November, will not be contacted and GM will attemp to settle or arbitrate with them.

Hummer Brand to Fade Away? No Buyer for Hummer Yet.

2009 Hummer H2

General Motors announced last week that it will terminate its Hummer brand after a planned sale fell through. General Motors had been working on selling their Hummer operations for over a year. The long drawn out deal with private Chinese manufacturer Sichuan Tengzhong Heavy Industrial Machinery dematerialized when no approval for the sale was forthcoming from the Chinese government.

Hummer sales declined over 80% in just two years. In 2007 close to 56,000 Hummers were sold. In 2009 the sales barely topped 9,000. In December of 2009 only 300 some Hummers were sold nationwide.