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Tue April 28, 2009
GM to force more than 1,000 dealers to close
Detroit, MI – Detroit, MI (AP)
General Motors Corp. says it will force 1,000 to 1,200 underperforming dealerships to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets stronger.
Dealers were told of the move in a video conference Tuesday.
In addition, the company expects to lose 500 Hummer and Saturn dealers when the brands close or are sold, and it expects 400 dealers to close voluntarily.
Another 500 would be consolidated into other dealers.
A dealer who watched the conference told The Associated Press about the changes, and company spokeswoman Susan Garantakos confirmed the numbers.
The company announced Monday it plans to reduce dealerships by
42% from 2008 to 2010, cutting them from 6,246 to 3,605.