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GM to reinstate 600 dealerships slated to be cut

New York, NY – General Motors Co. says it will reinstate about 600 dealerships that were slated to be cut from the automaker's network.

GM executives say that about 600 dealerships out of the 1,100 seeking to stay with GM will receive letters giving them the option to remain with the company.

GM last year told 2,000 dealerships it would revoke their franchise agreements in October 2010 as part of its restructuring.

The company has said it needs to make the cuts to keep the remaining showrooms healthy. The dealerships say they have been treated unfairly and have been appealing the decision.

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