GM intends to reinstate more than 600 dealers

General Motors announced Friday it intended to reinstate more than 600 dealerships it had shuttered during its bankruptcy last year.

GM said that after reviewing 1,100 arbitration claims, the automaker had determined it could reopen a substantial number of dealerships, and sent letters of intent to more than 600 of them.

“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," GM North America President Mark Reuss said. “The arbitration process creates uncertainty in the market. We believe issuing these letters of intent is good for our customers, our dealers and GM.”

GM had closed roughly 2,000 dealerships during its restructuring and bankruptcy in 2009. The process was financed and directed by the U.S. government, which poured tens of billions in bailout funds into the company in exchange for an equity stake.

Dealerships in congressional districts across the country were terminated during the process, leading a bloc of lawmakers to push for the arbitration process to reinstate a number of dealerships.

"These actions secure the employment of thousands of workers across America and will help ensure that we have a robust dealer network as our car companies regain their strength," said House Majority Leader Steny Hoyer (D-Md.), who led a congressional effort to force GM into arbitration.

"I look forward to seeing dealers reopen in the weeks to come," Hoyer added.

This post was updated at 4:47 p.m.