GM to close 1,100 dealerships, Congress may jump in to help dropped dealers

Posted: May 15, 2009
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Chrysler dropped the bomb on some 789 dealerships yesterday letting them know that they will be closed down as a part of the company’s bankruptcy process. General Motors today is reported to send some 1,100 dealers the same letter today as it nears its government-imposed deadline to restructure its debt with shareholders, cut costs and reach concessions with the UAW.

U.S lawmakers whose home districts include GM and Chrysler operations in Michigan are now looking into a legislation that would help those dealers being dropped by the two struggling automakers.

Senate and the House of Representative officials told reporters yesterday that Congress could jump in to help those dealers that are being notified this week that their contracts with GM and Chrysler will not be renewed.

- By: Omar Rana

Source: Reuters


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  • zermatt

    The dealers that are being eliminated by Chrysler and GM were under performing dealers – right?

    I mean, no one has said that GM and Chrysler were eliminating the top performers or even the middle of the pack. So if we take GM and Chrysler at their word, these dealers are ones that should have been kicked to the curb some time ago. If most people are under performing at work they get let go and I am sure that many of these under performing dealers have shown bad sales people the door so they should be able to understand the concept.

    So why does anyone in Congress think that it is a good idea to reward these dealers for a job not well done?

    Since when has mediocrity become something that taxpayers should be rewarding?

  • josh

    Knowing GM/Chrysler's and Government's take on performance, it would not be surprised to see closure of those dealerships in smaller towns. I bet bigger cities would see their dealerships remain in order to compete with the other makers.

  • kabluey

    If I have to drive and hour or more to have my embarrassing domestic auto serviced I will sale it–and I will forever swear off a domestic car..

    I am so embarrassed by the domestic automakers! I can not restate that phrase enough…

  • zermatt

    The dealers that are being eliminated by Chrysler and GM were under performing dealers – right?

    I mean, no one has said that GM and Chrysler were eliminating the top performers or even the middle of the pack. So if we take GM and Chrysler at their word, these dealers are ones that should have been kicked to the curb some time ago. If most people are under performing at work they get let go and I am sure that many of these under performing dealers have shown bad sales people the door so they should be able to understand the concept.

    So why does anyone in Congress think that it is a good idea to reward these dealers for a job not well done?

    Since when has mediocrity become something that taxpayers should be rewarding?

  • josh

    Knowing GM/Chrysler's and Government's take on performance, it would not be surprised to see closure of those dealerships in smaller towns. I bet bigger cities would see their dealerships remain in order to compete with the other makers.

  • kabluey

    If I have to drive and hour or more to have my embarrassing domestic auto serviced I will sale it–and I will forever swear off a domestic car..

    I am so embarrassed by the domestic automakers! I can not restate that phrase enough…