According to reports Friday, General Motors said they will reconsider their decisions to close some dealerships in the US as part of a compromise to stave off federal legislation that would require them to keep showrooms open.

In a restucting move, GM said it would cut 2,400 dealers from its 6,000-dealer network by fall 2010.  The company said it could save save $2.5 billion with the move.

However, dealers accused the auto maker of closing several lots which were still profitable.

“We just could not in good conscience accept the GM or Chrysler plans when they rely so much on flawed criteria and would make a mockery of the arbitration process,” the Committee to Restore Dealer Rights said in a statement. “Under their plans, a dealer would have had a better change at winning the Powerball lottery than getting back in business.” The group is headed in part by Jack Fitzgerald and Tammy Darvish, two major D.C.-area auto dealers.

“It’s a good idea, but it’s kind of late, isn’t it?” said John Wolkonowicz, an analyst at consultant IHS Global Insight speaking to Bloomberg While the closings could have been handled better, the new plans will “help some dealers. It’s a good thing and an upfront thing to be doing,” he said.

in response, GM now says it will conduct face-to-face reviews with dealerships.

Automaker To Reconsider Closing Some Dealers