GM dealers

General Motors Co. has reversed itself and decided to keep open 660 dealers it had planned to close as part of a restructuring plan orchestrated by the Obama administration to help the company emerge from bankruptcy.

GM's initial plan to close 2,400 dealerships was met with opposition by the targeted dealers, who appealed to members of Congress to keep them in business. The political pressure was felt by a company that is now 60 percent owned by the federal government. The consolidation was intended to save the company money.

GM agreed to re-examine the planned closings and to accept arbitration in some cases, particularly after threats from politicians. About 1,100 of the dealers appealed their closure. After a review, GM says the process used to determine which showrooms should close was flawed, the Wall Street Journal reported.

The impact of the reversal is unclear. Many of the dealers have already closed or are now dealers for other automakers.

GM officials say poor sales motivated their reconsideration after GM lost out to Ford Motor Co. in February. Mark Reuss, head of GM's North American operations, said the company "would have beaten" Ford if not for closing dealerships.

Politics help, too.