Failing to convince the dealers over the closing of their dealerships, General Motors has decided to restore around 600 of the 1,100 dealerships, which it had earlier scheduled to close.

Immediately after the proclamations made by GM on its move of closing a number of its dealerships by October 2010, the dealers brought out a protest.

The shutting down would have allowed GM to save a sum of $2.5 billion, per year. GM has shared that it will be providing the instructions for the restoration to the 600 of its dealers via letters.

"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 of GM North America.

"The arbitration process creates uncertainty in the market", he added.

The re-establishment brought a sigh of relief to a majority of the dealers. "I'm very pleased because the dealers have had their property taken from them improperly and now they're getting it back. GM is doing the right thing ", said Jack Fitzgerald, a major car dealer in the D. C. area. At present, GM has a dealership of 5,500.