GM Offers Up To $1 Million For Some Dealerships To Close

General Motors is offering some dealerships $100,000 to $1 million to wind down their businesses over the next 17 months, according to three sources familiar with the proposals.

For Pontiac-only franchises, GM is offering only $10,000 to $200,000, according to two sources.

The offers are contained in so-called wind-down agreements that the bankrupt automaker has sent to dealerships that will not have their franchises renewed when they expire on Oct. 31, 2010.

Each dealership will be offered an amount based on its inventory, overall cost structure and regional rank, said GM sales chief Mark LaNeve in a Monday interview, without providing figures.


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Spectator - 6/3/2009 2:56:38 PM

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Are you kidding. Please tell me that you are trying to be funny 009.

This is hilarious. So now the money we loaned them to stay afloat is no longer being spent on building cars...its going to be given to dealerships as "retirement bonuses" to close a stealership.

What, is GM afraid of litigation on a broken contract or somthing. Note to GM...you just filed a chapeter 11...your safe from that crap.

Honestly...hasen't their been any oversight on spending of this loan at all?!