GM Dealer Network Downsized

By: Associated Press
By: Associated Press

General Motors says its dealership network will be 25 percent smaller than a year ago after completing talks with dealers who fought to stay in its network.

GM says it is reinstating about 725 dealers that resisted the automaker's attempt to kick them out. That leaves GM with 4,500 dealerships, down from 6,049 in June 2009.

GM originally sought to shed even more dealerships from its ranks, but Congress passed a law last year requiring arbitration before automakers could cut a dealership loose.

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