GM dealer profits could fall by 18 percent this year

GM has told its dealers that profits could fall by more than 18 percent this year. The drop could lower the average dealer’s annual profit to $199,000 a store this year according to Doug Herberger, vice president of service and parts operations.

Dealers, who don’t seem to be surprised, said that figure sounds about right since GM’s sales dropped 17.8 percent in the first nine months of 2008.

GM is expected to announce details on its ongoing talks with Chrysler later this month. The two companies may either merge or GM may totally eat up Chrysler brand. Stay tuned.

Source: Free Press