In Michigan
6:34 pm
Tue June 8, 2010

GM to keep 900 more dealerships than planned

DETROIT –

About 900 General Motors dealerships that the company had planned to cut loose appear to be getting a reprieve.

GM North America President Mark Reuss tells The Associated Press that the automaker should wind up with about 5,000 dealers in July. That's the end of a process that allows dealers to appeal GM's decision.

The company originally planned to have only 4,100 dealers across the country.

GM says it wanted to avoid the expense and time of the closures. Reuss and other new leaders at the company also feel shedding dealers isn't critical for GM to achieve profitability.

GM won't estimate how many jobs the decision will save, but an auto industry trade group says about 50 people work at an average new-car dealership.