Wikinews

U.S. automaker GM plans to close 1,100 dealerships

Friday, May 15, 2009

2008–09 financial crisis



More articles about the 2008-09 financial crisis on Wikinews:
A GMC Yukon hybrid model

American automobile manufacturer General Motors (GM) announced plans Friday to shut down about 1,100 of its dealerships, in an effort to evade bankruptcy and lower its expenditures.

GM's move comes a day after Chrysler, another U.S. car maker, released a list of 789 dealerships that it was closing. Unlike Chrylser, GM will not publicly announce the dealerships that it intends to shut down. Instead, dealerships whose franchises won't be renewed after October of next year will receive a private letter telling them of the decision.

At the moment, GM has 6,246 dealers in the U.S. It intends to reduce that number to 3,605 by the end of 2010. GM said the dealerships that were to be closed are "underperforming and very small sales volume U.S. dealers."

“They’re dealerships that are in most cases hurting, losing money, and in danger of going out of business anyway,” said GM's sales, service, and marketing vice president in a telephone conference. “It’s a move that people could argue should have been taken years ago but this leadership team had no choice but to do it today.”

The dealers that are to be closed represent 18% of the firm's dealership network, but only 7% of GM's 2008 revenue.


Sources

 

Share this:           


 

This page is archived, and is no longer publicly editable.

Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.

  This page is archived, and is no longer publicly editable.
Articles presented on Wikinews reflect the specific time at which they were written and published, and do not attempt to encompass events or knowledge which occur or become known after their publication.

Got a correction? Add the template {{editprotected}} to the talk page along with your corrections, and it will be brought to the attention of the administrators.

Please note that due to our archival policy, we will not alter or update the content of articles that are archived, but will only accept requests to make grammatical and formatting corrections.

Note that some listed sources or external links may no longer be available online due to age.


Retrieved from "https://en.wikinews.org/w/index.php?title=U.S._automaker_GM_plans_to_close_1,100_dealerships&oldid=822206"