General Motors Co and Chrysler proposed steps on Thursday to resolve complaints from terminated dealerships and head off potential congressional intervention.
GM and Chrysler each said they would establish a binding review process to evaluate closures, and determine whether they were based on business decisions.
The companies also promised more transparency.
Chrysler held out an opportunity for terminated dealers to join their revamped sales networks, while GM said it would try to increase the diversity of its network.
The issues are important for GM and Chrysler to resolve since they do not want Congress to potentially reopen key restructuring moves that were approved by the Obama administration and two bankruptcy judges.
The companies are trying to revamp their businesses and compete with nimbler rivals in an uncertain market.
A major dealer group, however, was not satisfied with the GM proposal and said Chrysler, which is now run by Italy's Fiat, needed to clarify aspects of its plan.
"We (will) continue to work with Congress on the pending 'dealer rights' legislation in the event a non-legislative solution cannot be achieved," the National Automobile Dealers Association said in a statement.
GM plans to wind down up to 1,300 franchises by the end of 2010 while Chrysler has already cut nearly 800 showrooms.
The decisions were made by the companies during their bankruptcies this summer as a way to operate more efficiently.
Hundreds of dealers have complained that their franchise rights were violated and sought relief from the government.
The dealerships have some leverage with lawmakers since their businesses are important to local economies and they are important donors to candidates and political causes.
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