General Motors to Tell Dealers to Close
April 28, 2009 by Stephen Kersey
Filed under Business
General Motors continues to try to find ways to save money. The latest move is to tell more than 1,000 car dealerships to close their doors. GM will target those dealers who aren’t making much money and the ones that are losing money. The total number of dealerships that will close in this wave is expected to be more than 1,000 but not more than 1,200.
On Monday, GM announced that they were planning to cut more than 2,500 dealerships by 2010. These dealers closing now will be the first wave of closings.
Also announced Monday was GM’s plan to do away with the Pontiac brand. Hummer, Saab and Saturn are also going to be done away with or sold. When it’s all said and done, GM will be down to the four brands of GMC, Chevrolet, Buick and Cadillac.
According to various reports, the closing of the more than 1,000 GM dealerships could result in more than 100,000 job losses and more than $1.5 billion in sales being lost.
GM Dealer (Image: Flickr)
listening to CNN all is rosy and recovery is just around the corner because Citicorp posted a profit (duh, if my mom gives me money this month I will post a profit too) looks like the liquidation of manufacturing in favor of banking as an industry has some unwanted side effects.