Washington General Motors and Chrysler will reconsider decisions to close thousands of dealerships as part of a compromise meant to stave off federal legislation that would require them to keep showrooms open.
The decision by the two automakers, announced Thursday, raises the prospect of new life for some of the more than 3,000 dealerships that were slated to close as part of a broad industry restructuring. Dealers have loudly protested the decisions, saying they are unfair.
The new plans call for face-to-face reviews with dealerships and offer binding arbitration with those who face closure of their showrooms. GM, the largest U.S. automaker, also said it would be more transparent about how it picked the dealers that will close. It will also speed up payments to assist those targeted for shutdown.