Some GM and Chrysler dealers destined for the dustbin get new life

Updated

Some 2,000 General Motors and Chrysler Group auto dealerships may get a second chance to stay in business as the car companies reassess the future of franchises that were slated for closure or already shut down. The review process is part of binding arbitration GM and Chrysler have entered into to sidestep passage of federal legislation that would compel them to provide compensation to franchisees or reinstate dealership contracts.

The two carmakers said they would review the closure lists and determine whether the decisions were business based. They also promised more transparency. GM, for example, agreed to tell Cadillac, Buick, GMC and Chevrolet dealers how decisions were made, and provide face-to-face reviews with dealers that are still open, among other concessions.

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