NADA Statement in Response to GM's Announcement to Restore 661 Dealers

WASHINGTON (March 5, 2010) -  The following is a statement by Ed Tonkin, chairman of the National Automobile Dealers Association:

“The announcement by General Motors today of its intent to reinstate 661 dealers is a significant move forward in advancing the state of dealer relations. We're eager to work with Mark Reuss and his team as they focus on restoring stronger ties with their dealers.

“We appreciate the good faith effort that GM is showing and hope that this carries forward in its continuing settlement and arbitration discussions with the remaining wind-down dealers.”

GM Statement Regarding Dealer Arbitration

DETROIT (March 5, 2010) - General Motors is taking a major step toward its goal of creating positive, lasting relationships with its dealers.

GM carefully reviewed each of the approximately 1100 dealer reinstatement claims that were filed with the American Arbitration Association. We conducted these individual reviews, keeping in mind our goal of moving quickly and effectively to complete the overall arbitration process, and determined that we would send more than 600 Letters of Intent to the involved dealers. The Letter of Intent contains our usual core business criteria. This action will allow these dealers to conduct normal dealership operations as soon as they comply with the terms of the Letter of Intent.

“We are eager to restore relationships with our dealers, and get back to doing what we do best - selling cars and taking care of customers,” said Mark Reuss, president, GM North America. “The arbitration process creates uncertainty in the market. We believe issuing these Letters of Intent is good for our customers, our dealers and GM.”