On Friday, U. S. largest automaker, General Motors Co. declared that it will reinstate 661 dealers and may negotiate with nearly 400 outlets to boost U. S. sales and market share.

GM's North America President, Mark Reuss said that GM proposed franchise agreement letters to the dealers. The company currently possesses around 5,500 outlets.

"We are eager to restore relationships with our dealers", said Reuss. "The arbitration process creates uncertainty in the market. Issuing these letters of intent is good for our customers, our dealers and GM".

According to Autodata Corp. in Woodcliff Lake, New Jersey, last year, U. S. sales of cars declined to 19.9%, compared with 22.3% in 2008. Since 1998, for the first time, Ford Motor Co. has beaten GM in February sales.

Maryann Keller, President of Maryann Keller & Associates in Stamford, Connecticut said that the dealer reinstatement plan "is a good thing". "There were false economics in terminating that many dealers. If they restore what they've lost and put back into business dealers that were financially viable, then they will gain sales".

Last month, Reuss said that his most top priority at the moment is restoring relations with dealers.