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Group Says 20 GM Dealers In MN Will Be Reinstated

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Mar 9, 2010 10:01 pm US/Central

Group Says 20 GM Dealers In MN Will Be Reinstated

MINNEAPOLIS (AP) ― Twenty auto dealers in Minnesota have received preliminary calls from General Motors Co. saying their franchises will be reinstated as GM dealers.

The Minnesota Auto Dealers Association announced the news Tuesday, but cautioned that the dealers have not received letters confirming the reinstatements.

GM said last week it would send letters to 661 dealerships nationwide that it sought to close -- and give them the option to remain open.

Ultimately, 30 Minnesota GM dealers sought arbitration to stay open. A list of dealerships has not been made public, but Minnesota Auto Dealers Association executive director Scott Lambert says most of the saved dealerships are in rural areas or sell Cadillacs.

WJON in St. Cloud reports that Kornois Motors in Paynesville is one of the stores that will stay open as a GM dealer.

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