The Associated Press February 5, 2011, 2:34PM ET

GM considers adding dealerships in coastal states

A top executive says General Motors may add dealers in big metro areas on the U.S. coasts to handle expected sales growth.

North American President Mark Reuss (Royce) says GM has been losing dealers on the coasts for 20 years due to slow sales and poor products.

But he says new models like the Chevrolet Cruze compact are selling well in California and other coastal states. GM expects sales to rise further as it repairs its reputation and the economy recovers.

Reuss says GM needs dealerships most in the San Francisco and Los Angeles metropolitan areas. He says it could move them from depressed areas or create new ones.

Just two years ago the company shed more than 2,000 dealerships across the U.S. as it went through bankruptcy protection.

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