GM Dealerships Closings. Chevy & Cadillac still not mentioned

[Richochet83]

GM dealerships around the nation are awaiting the least of closing of the 1200car dealerships across the country. GM dealer closing is not surprise, the company had in April announced the goal to reduce the size of it's dealerships.

In April 28 update GM had said that it aims for dealership closings to reduce the list of the current dealer network from 6,246 in 2008 to 3,605 by the end of 2010. The GM dealership closing list is not yet published at General Motors' website, but the news is already being reported by the mainstream media.

According to the Today Show the number of GM dealers included in the closing list is 1200, however; ABC News reports 1100. This is not a small difference. When you consider that each GM dealership may be employing 10 to 20 people or more, we are talking about 100 to 200 more families possibly going unemployed around the nation.

The Pacific Business News referring to the GM CEO Fritz Henderson writes that the company will begin late this week notifying dealers who will be included in the dealership closing list as the GM cuts its U.S. network by 50 percent. Reuters writes that GM has not said how many dealerships will be closed and how many jobs will be lost when it sheds the Saturn, Hummer and Saab brands and how many would fold due to financial strain.

This dramatic development in the U.S. car industry comes day after GM's rival Chrysler announced about its plan to close the 25 percent of its 3,189 dealerships. The Chrysler dealerships' closing number is 789.

GM also plans to close 17 plants across the nation and reducing U.S. hourly employment from about 61,000 in 2008 to 40,000 in 2010, and leveling off at about 38,000 starting in 2011. These painful job cuts, dealership closings and reductions are aimed to restructure the company's balance sheet and lower structural costs. The company hopes to break even (on an adjusted EBIT basis) at a U.S. total industry volume of about 10 million vehicles.

It is expected that the GM dealership closing list will be available by late today or by the end of the weekend when all the GM dealers will be notified if their dealerships will be hit by this wave of the dealer closing.

SOURCE: Huliq News
http://www.huliq.com/1/80942/gm-deal...r-closing-list

[Vash]

The letters went out... (according to a GMC dealer on the radio).

[Iwantone2]

I guess now, it's just a waiting game for everybody...

[cam2fst4u]

just said on fox news that GM was contacting about 1100 dealers that were "under performing and very small sales volume" and that they were terminating their franchise and they did not see them as part of its dealer network on a long term basis

[2SSRS@Gen5diy]

You guy know that for every dealership to close we loss 50 jobs.

[CamaroScotty]

I was told there will be "NO LIST"....it is up to the dealers to release the info.

Chrysler is in bankruptcy, thus they required a MASTER LIST.

[Suskam]

I just read the same thing, Scotty.

[ItIsWhatItIs]

I am all for the survival of GM and someone really needs to explain to me how closing dealerships will solve this problem. I heard on the news this morning that in the '50's and 60's there were close to 50,000 car dealerships in the U.S. Today there are 19,000. That seems to be quite a reduction to me. Our government puts in billions to save 38,000 jobs and at the same time cuts what I believe I heard to be 200,000 jobs at the dealerships.(May include Chrysler).

[UCI CamaroFan]

Originally Posted by ItIsWhatItIs

I am all for the survival of GM and someone really needs to explain to me how closing dealerships will solve this problem. I heard on the news this morning that in the '50's and 60's there were close to 50,000 car dealerships in the U.S. Today there are 19,000. That seems to be quite a reduction to me. Our government puts in billions to save 38,000 jobs and at the same time cuts what I believe I heard to be 200,000 jobs at the dealerships.(May include Chrysler).

GM spread themselves too thin. They need to reduce their size so that they can go down to a level where they will be profitable again. At a smaller size, they cannot support the current number of dealers.

it's either close down some dealers, or GM goes entirely bankrupt.

Maybe after they downsize, they can finally get my car built. I ordered back in January, and I am still at 1100.

[Iwantone2]

So, do you guys think that our dealers will have the guts to tell us if they are getting axed? are they under any obligation to tell us?

[LabRat]

Originally Posted by Iwantone2

So, do you guys think that our dealers will have the guts to tell us if they are getting axed? are they under any obligation to tell us?

Yes!

In just about 17 months, when they don't renue the contracts.

Until Then Calm Down!!!!!

LabRat

[S-10Ken]

If the dealers are independently owned how does it save GM a lot of money by closing them down?

[Chevyrocker]

SFE bonuses, dealer cash, employee spins/incentives, etc. Plus, once GM dowsizes, they won't be building enough cars for all of the dealerships.

[Chevyrocker]

By the way, the 10-20 employess per dealership is waaaaaaaaaaay off. I work at a smaller store and there are almost 100 employess here including body shop, service, porters, salesman, parts, accounting, IT, buyers and management.