GM to force 1,000+ dealers to close
General Motors Corp. will force 1,000 to 1,200 underperforming dealerships to close as part of the automaker's restructuring plan that involves eliminating more than 2,600 franchises by next year. Those dealers targeted for elimination will know by May 11, according to a GM dealer who watched a video conference today held by GM executives.
The conference came a day after GM announced it would trim its U.S. dealership ranks by 42 percent to 3,605 by next year, a deeper and quicker cut than what was included in a Feb. 17 plan rejected by President Obama's autos task force.
GM will shed about 500 dealerships by eliminating the Saab, Hummer and Saturn brands. And GM expects 400 to 600 dealerships to terminate the franchises voluntarily based on the struggling sales environment and economy. GM would buy back inventory, signage and parts, the dealer said.
GM executives also expect 400 to 500 dealers might be consolidated with other franchises.