Skip to comments.GM to force more than 1,000 dealers to close (immediately -- and 1,600 more by 2010)
Posted on 04/28/2009 12:46:15 PM PDT by Zakeet
General Motors Corp. told its dealers Tuesday that it will force 1,000 to 1,200 underperforming locations to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets more profitable.
GM told the dealers about the plan in a video conference, according to a dealer who spoke on condition of anonymity because the video conference was private. It is part of the company's plan announced Monday to cut more than 2,600 dealers by 2010.
The company expects to lose 500 Hummer and Saturn dealers when those brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealerships, according to the dealer.
GM said Monday that it also would eliminate its Pontiac brand, but there are only 27 dealers that sell just Pontiacs, according to the National Automobile Dealers Association. Most Pontiac dealers also sell Buick and GMC vehicles at the same location.
(Excerpt) Read more at news.yahoo.com ...
Someone tell me if I am wrong. The outcome of this is that between the Government and the Unions they own 89% of GM.
The Bond Holders get 10%.
Under a Chapter 11 Bankruptcy Bondholders have precedent over all assets.
Who owns the Bonds. Probably Pension Funds and individual investors. Investors Getting screwed?
This would help the auto industry from the bottom up. Maybe these dealers would have been able to stay open. It wouldn't just pour money into the health care fund. AND, MOST IMPORTANTLY, THE TAXPAYER WOULD HAVE A NEW CAR!
Instead, they offered to let us deduct the sales tax on next year's tax return. Oh, goody!
Women and minorities, ah, yes. And just how many “minority” owned dealerships will be cut? And if they are allowed to survive, guess whose market share they will pick up? Non minority dealers? Perhaps giving back wealth to “its rightful owners”? I may be wrong, but it wouldn’t surprise me.
I'm sure this is not a problem. All these unemployed dealership employees need to do is step right into those shovel ready high paying Green jobs.
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