GM Closing About 1,100 Dealerships Nationwide

Gm-dealer-560

From our colleagues at Cars.com, GM will announce the start of a major plan to trim its dealer network of some 2,400 stores over two years. The first cuts will come today when about 1,100 stores are expected to receive word that GM will not renew their franchise contracts after October 2010.

Yesterday, Chrysler alerted 789 of its franchises that they would be terminated. Unlike Chrysler, though, GM isn't releasing the names of dealers on its hit list.

While GM says these stores could operate through spring of 2010, it’s possible they could go out of business long before their contracts expire. Also, dealers notified today don't include approximately 450 likely to close when GM kills the Hummer, Saab and Saturn brands.

GM will announce its formal plans later today.

Comments

Thats Ashame!! Here they get Billion of $$$$ and now running off with our Money to China. Sure the Big Rig gets there Money like Crooks!!! No longer American Heartbeat.. Now Cina Heartbroken. OUR COUNTRY IS FALLEN and we will be like Russia... Flat Broke!!!

wow ryan doesn't get it

Ryan gets it. Obama is wrecking the auto industry. Forcing to close the dealerships is constitutional. Then the advertising budget in half. Yeah. That is going to really help to sell cars. We are from Government Motors and we are here to help.

Obama maybe wrecking the auto industry but he has not forced GM or Chrysler to close dealerships. The decision to close dealerships have fully been GMs and Chrysler's decision.

Fords are great, but gm just wont be able to ever pay it back.

The dealer at Peoria Pontiac (GMC) located on Bell Rd etc... sold me a vehicle and all papers signed and deal was finished. However, the day I went to pick up my vehicle, the owner as well as the financial guy who had set the terms told me that the interest rate had to be changed from the agreed 8% 12 % rate. I hope that this dealership goes out of business.
However, the dealership has a brother who owns the Buick dealership so I guess the public should just be worned..

It is Obama closing the dealerships because Obama is forcing primary lenders, debt holders to cave on their contracts; cutting advertising budgets in half.

From Financial Times.

An Obama administration official said: “It is neither in the interest of Chrysler’s senior lenders nor the country for them to advance a proposal that would yield them an unjustified return ...

How is it obama's fault you bubble heads the auot industry was in the tank before he was in office its not his fault they were asking for money back in oct / nov of last year pencial heads.

As a past employee of GM, and the auto industry. They deserve it. Its about time that the greediness catches up. I have watched owners step on employees and customers to make millions more. All so they can fly away to florida while we are all left to pick up the pieces. The trade is suppost to be about customer service, but threw their own greed and pigheadedness they sunk their own company in the whole. Kudos to that.



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