GM’s Mark Reuss says automaker will end up with 5,000 dealers in July

Approximately 900 GM dealerships have received a stay of execution from the company, as North America President Mark Reuss has told the AP that the company expects to wind up with around 5,000 dealers in July, winding down the process of franchisee appeals. Originally, GM’s plan called for only 4,100 dealers across its network.

The reprieve is indicative of a major shift in the GM school of thought as we see a regime change amongst the high ranks. The new brass feels that it would be too expensive and time consuming to commence with all of the scheduled closures, and that it is not critical to GM’s profitability.

Though GM didn’t have any precise figure on the number of jobs that would be saved, many industry experts say that about 50 people are in the employ of your average new car dealership.

– By: Stephen Calogera

Source: MSNBC