Virtually all dealers asked to do business with the new General Motors Corp after bankruptcy have agreed to do so, while the automaker will work through the weekend to weigh appeals from those that are being cut loose, said the company's chief executive.

Fritz Henderson told a House of Representatives subcommittee that 96 percent of the estimated 3,500 dealers the company wants to retain have so far agreed verbally or in writing to participate in the new GM.

"Our dealership consolidation is not just about saving money, but about creating opportunity and revenue growth," Henderson said, adding it received 856 appeals from dealerships facing termination and reversed closure decisions for 45.

GM will consider appeals through the weekend, he said.
Chrysler Group LLC President Jim Press said that Chrysler has sold or redistributed 100 percent of vehicle inventory from the 789 dealers it terminated in bankruptcy. Unlike GM, Chrysler offers no appeals for dealers, some of whom have complained of severe pressure this year from the manufacturer to buy more vehicles even though Chrysler sales were weak and the company's prospects fast deteriorating.

Chrysler plans to operate about 2,300 dealers under its alliance with Italy's Fiat SpA, which closed earlier this week.

House and Senate members have introduced legislation to force changes in how GM and Chrysler handle showroom closures, which dealers estimate will cost 100,000 jobs.

Lawmakers have also asked the Obama administration to intervene with a White House/Treasury task force driving GM's and Chrysler's restructurings. The government will take a majority stake in GM post-bankruptcy and holds 8 percent of Chrysler.

Representative Bart Stupak, chairman of the Energy and Commerce subcommittee on oversight and investigations, said he wants GM and Chrysler to become viable, but not at the expense of reputable and productive dealer affiliates.

"I am concerned that the accelerated timeframe for dealership closures and the way in which dealers have been treated may actually damage the brands more than help them," said Stupak of Michigan, where GM and Chrysler are based.

GM plans to close 1,280 U.S. dealerships through October 2010, leaving the company with at least 3,500 showrooms and a retail market share of about 17 percent, assuming annual industry sales of 10 million units.

"Even with these cutbacks, GM will still have the largest dealer network in the country," Henderson said.

By comparison, Ford Motor Co operates 3,300 US dealerships, and global sales leader Toyota Motor Corpof Japan has 1,200 in the US.

Chrysler, GM and the autos task force have been criticized by some dealerships and dozens of lawmakers for aggressive restructuring. "In 24 hours I was told that everything my family and I had worked for 84 years would be taken away," said Frank Blankenbeckler of Carlisle Chevrolet Co in Waxahachie, Texas, choking back tears. Blankenbeckler received closure notices from both GM and Chrysler over two days in May.

Executives said dealers set to close may have low volume, weak sales or poor customer service or are not conveniently located. One affected dealer said he was profitable and highly rated, and another dealer challenged Press, saying the wind-down that began June 9 is costly and offers no compensation.