Last year General Motors announced that they would be closing dealerships due to the low demand for cars and trucks. Many dealerships argued the decision saying the auto maker did not offer enough details explaining how they decided which ones would be closed. Complaints to congress lead to a bill giving dealerships a chance to dispute their closure depending on their past success. This week GM announced that it will be reinstating more than half of the dealerships that disputed the closures. GM executives said that more than 600 dealerships out of the 1,100 seeking to stay open with GM will receive letters giving them the option to remain with the auto maker.

Below is GM’s statement regarding the dealer arbitration:

General Motors is taking a major step toward its goal of creating positive, lasting relationships with its dealers.

GM carefully reviewed each of the approximately 1,100 dealer reinstatement claims that were filed with the American Arbitration Association. We conducted these individual reviews, keeping in mind our goal of moving quickly and effectively to complete the overall arbitration process, and determined that we would send more than 600 Letters of Intent to the involved dealers. The Letter of Intent contains our usual core business criteria. This action will allow these dealers to conduct normal dealership operations as soon as they comply with the terms of the Letter of Intent.

“We are eager to restore relationships with our dealers, and get back to doing what we do best – selling cars and taking care of customers,” said Mark Reuss, president, GM North America. “The arbitration process creates uncertainty in the market. We believe issuing these Letters of Intent is good for our customers, our dealers and GM.”