GM to close down 1,700 dealerships by June 1st

GM has accelerated its restructuring as the impending June 1 deadline approaches along with Chapter 11 speculations. The carmaker has informed its dealers that it will expedite the close down of about 1,700 dealerships, an insider has said. At present, there are around 200 dealers that were shut down in this year’s first quarter.

Although the closure of such large numbers of dealers was not confirmed by GM officially, a spokesman did confirm GM-dealers meetings. The insider refused to comment on what happened behind the closed doors of the meeting. General Motors is counting on either the demise or sale of Saturn and Hummer. If GM succeeds in getting rid of these liabilities, the dealerships for these brands will also follow. GM can get rid half of the 1,700 dealerships it intends to close from the Saturn and Hummer brands alone. This will mean that there will be no buy-outs for the respective dealers together with those which GM will deem to be underperformers, whose franchise will ends by the first of June. Dealership closures will take place, whether GM goes bankrupt or not. One of the suggestions offered for the survival of the dealers is for them to acquire Saturn.
Read Article

800over - 4/16/2009 11:24:33 AM

+1 Boost

What percentage of GM dealers does 1700 represent? How many Saturn and Hummer dealers are there?

09CTSVforMe - 4/17/2009 8:54:55 AM

+1 Boost

I think there are 600 in the DFW area. At least it seems that way!

holmstar - 4/16/2009 3:10:31 PM

+1 Boost

There are relatively few saturn (and hummer?) dealers due to the way that they were franchised. Each dealership has it's own buffer-zone around it so that there is only one dealership for a given area. There are MANY more dealerships for GMs other brands because there was no such buffer zone.

1evlaudi - 4/16/2009 3:36:53 PM

0 Boost

well the Chevrolet dealer at the Thousand Oaks auto mall, here in CA has closed already.

thstone - 4/16/2009 4:59:43 PM

0 Boost

From a financial point of view, GM needs to cut AT LEAST 1,700 dealerships in addition to the ones associated with Saturn and Hummer. Thus, the real number needs to be more like 2,500 and 4,000 (ultimately) isn't out of the question.

From a personal point of view, this is gonna be ugly and I feel truly sorry for the thousands who will lose their jobs.

I do not favor the bailout model, but based on what the financial companies have received, I think Obama should throw GM $500 billion and five years to try and fix the problems.

I will probably be pummeled for that comment, so feel free to start the de-boosting!

OneOfOne - 4/19/2009 6:44:40 PM

+1 Boost

500 billion dollars eh? do you have any concept of how much money that is? and how much gm has already lost in this decade alone? I hope someone other than you manages your finances.

Agent63 - 4/16/2009 5:50:55 PM

+1 Boost

It's a shame. The last good thing that came from GM was the CTS-V.

09CTSVforMe - 4/17/2009 8:54:16 AM

+1 Boost

and the ZR-1 and the Cobalt SS...

funny how they can make great performance cars and trucks (I guess...I'm not a truck guy)...if only they could figure out how to make better "normal" cars.

OneOfOne - 4/19/2009 6:47:16 PM

+1 Boost

anyone could put a ridiculously large motor in a car. that doesnt make it great. and how many of those so called great cars do they sell? not many I would guess. if they had any talent and will they would make great cars that sold to the mainstream. with motors that dont need 8 cylinders or 5 plus liters of displacement. their engineering departments and management lack talent and that trickle down effect is what is killing them.

TexLandRover - 4/16/2009 7:34:20 PM

0 Boost

GM has some SERIOUS problems. Its going to take quite a while for all this to come to pass. I do feel bad for the many legitimate business owners, dealers & suppliers, who will have to suffer through this fiasco. I don't see how they will recover any sales numbers anytime soon.

investor27 - 4/17/2009 1:26:44 AM

0 Boost

They don't have to lose their jobs if they can get their union (UAW) to make the much heralded and needed concessions.

OneOfOne - 4/19/2009 6:49:48 PM

+1 Boost

Toyota and Honda are a: profitable and b: not taking tax payer dollars and c: not union. also customers actually WANT their products. they did when they 'voluntarily' restrained their sales and they do now that they are free to sell as many cars and trucks as they can make. the uaw is in concert with poor management in killing gm.