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Chrysler And GM Will Reconsider Dealership Closings

Washington, DC — General Motors and Chrysler announce that they will reconsider closing dealerships as part of a compromise reached to avoid federal legislation.

The Associated Press reports that the decision raises the prospect of new life for some of the more than 3,000 dealerships that were slated to close as part of broad auto industry restructuring. Dealers involved in talks say that only a handful of the lots targeted for closure will survive. Many have accused the automakers of closing lots that are profitable and not being transparent with their reasoning. GM and Chrysler agree to have face to face talks with the dealers that challenge the closure of their showrooms.

Mother Lode Motors in Sonora sold new Chrysler products before the recent slide of the American auto industry but now focuses on Kia. Manager Nathan Flake had no comment regarding the recent announcement.

Written by bjhansen@mlode.com.