One in Six GM Dealers Closing by 2011

[Soup]

One in Six GM Dealers Closing by 2011

May 15th, 2009 by Ross Edwards

More than 1/6th of GM’s 6,000 dealerships are finding out today that they will close by the end of 2010. GM says that it will not renew the franchise agreements it has with 1,100 dealerships when they expire in October 2010.

Many of the closing dealerships will be ones that focused on Hummer, Saab, Saturn and Pontiac. Those brands which will all be either sold or closed by the end of 2010. Hummer, Saab and Saturn will all be sold within the coming months, so dealers selling those cars will most likely strike new franchise agreements with the new companies. Pontiac will no longer make vehicles after the 2010 model year.

More than 300 GM dealerships have already closed this year due to slumping sales and the difficulty of getting a new car loan.

GM is hoping that cutting down on dealerships will help the company meet the government’s restructuring goals. If GM can’t convince the government that it is economically viable on June 1, the automaker will be forced into Chapter 11 bankruptcy.

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[JGT8229]

GM is hoping that cutting down on dealerships will help the company meet the government’s restructuring goals
thats exactly what they didnt want to happen and why they gave them the money..... shit heads

[Jonnychadootz]

This is the same thing as being on a sinking ship full of holes. You stick your finger in 1 hole to stop the leak then another springs up. How about we take back what's left of the billions we gave them and let the ship sink like it's going to anyway. What a waste of time and effort this has all been. Besides what i just said, we live in a capitalistic society in the terms that some business's make it some don't. If you started a business and your shit went down the drain no1 would care. Wtf is this picking and choosing who's gonna make it shit?