GM to pay closing dealers about $600 mln

• Source: xinhua
• [14:02 July 23 2009]
• Comments

General Motors Co. said Wednesday it will make cash payments of nearly $600 million to the more than 1,300 dealers it plans to close by the end of next year.

According to a Detroit News report, Mike Robinson, GM's general counsel for North American operations, told the House Judiciary Committee's subcommittee on commercial and administrative law that GM had begun making the payments on Monday and had already paid out $150 million.

GM had confirmed previously that it was offering wind-down payments of up to $1 million per dealer.

By the end of next year, GM plans to have between 3,500 and 3,800 dealers, down from about 6,100 this year.

US Congress is considering several bills trying to stop the closing of GM dealers and force the reopening of the Chrysler dealers. The House last week approved a spending bill that includes a provision seeking to reverse the dealer closings.