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

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