GM’s bad news for dealers expected today
General Motors Corp. intends to eliminate up to 1,200 of its dealerships, which are expected to begin receiving notices from the automaker as soon as today, a person familiar with the plan told Reuters.
The dealer reductions would be in addition to anticipated cuts from dropping unprofitable brands including Saab, Hummer and Saturn, the source said, and would be part of GM’s already announced plan to get rid of about 2,600 of its roughly 6,200 U.S. dealerships as it struggles to reduce costs.
The source said GM has been losing 60 to 65 U.S. dealers per month as those retail franchises succumb to the unprecedented industry sales downturn.
U.S. auto sales are near 27-year lows with no signs of immediate recovery in sight. GM plans a news conference today to provide details of its dealer consolidation activities. GM’s dealer plan follows Chrysler LLC’s announced plans on Thursday to cut 789 U.S. dealers out of nearly 3,200.