GM to cut up to 1,200 U.S. dealers: source

[Niels Bohr 72]

Fri May 15, 2009 10:56am EDT DETROIT (Reuters) - General Motors Corp plans to eliminate up to 1,200 U.S. dealerships, which are expected to begin receiving notices from the embattled automaker as soon as Friday, a person familiar with the plan said.

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 streamline costs.

The source said that 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 on Friday to provide details of its dealer consolidation activities. GM's dealer plan follows Chrysler's announced plans on Thursday to cut 789 U.S. dealers out of nearly 3,200.

(Reporting by David Bailey, editing by Gerald E. McCormick)

[w¡n9Nµ7 §£@¥€r 123]

die bichez die

[Bobby+Umit 161]

Well - less dealerships mean they can concentrate on bringing in more chinese cars to sell to the US.

[SirJon 0]

The trouble with Chinese cars is that you find you're wanting another one an hour later.....

[spookyturtle 9,466]

Finally some good news in this economic crisis. Two of our three automakers going bankrupt and tens of thousands people added to the list of unemployed. At least it will be a boost to the Japanese economy.

[Otto 83]

Am not concerned with this news - too many dealers anyway (in my opinion).

To kind of put 6200 dealerships in perspective - Walgreens has about 6600 stores (and they're on virtually every corner); do we need almost as many GM dealerships as we need corner drugstores?

[spookyturtle 9,466]

Am not concerned with this news - too many dealers anyway (in my opinion).

To kind of put 6200 dealerships in perspective - Walgreens has about 6600 stores (and they're on virtually every corner); do we need almost as many GM dealerships as we need corner drugstores?

Really, what's another hundred thousand unemployed? Just a drop in the bucket.

[EstebanTrabajos 7]

au revoirrrrrr

out with the old, in with the new!

[Otto 83]

Really, what's another hundred thousand unemployed? Just a drop in the bucket.

Who are we kidding? Know anyone who is employed at a dealership (besides mechanics) that have actually made a living in the past 1 or 2 years? Most cant afford to 'work' there..

[SMOKE 1,426]

Really, what's another hundred thousand unemployed? Just a drop in the bucket.

Who are we kidding? Know anyone who is employed at a dealership (besides mechanics) that have actually made a living in the past 1 or 2 years? Most cant afford to 'work' there..

me. i make a very good living at a chevy dealership.(no i'm not a mechanic) the axe hit 2 mid/large sized dealers today in OKC. thats about 400-500 more unemployed.

Edited May 15, 2009 by SMOKE

[Trompe le Monde 1,107]

Will you be okay, Smoke?

[w¡n9Nµ7 §£@¥€r 123]

thats about 400-500 more unemployed.

There are windmill operator jobs waiting for them. We made those windmills but the wind never materialized. Hope those guys can run. Treadmill experience will come in handy.

[mawilson 2,133]

GM to cut up 1,200 U.S. dealers

Ouch. The layoffs are painful enough, do they really have to cut them up?

[SMOKE 1,426]

Will you be okay, Smoke?

yah i'm good. we had a meeting w/ the owner about a month ago. he told us 'GM is going to close dealers w/ lower sales numbers & higher over head. mostly in metro areas. while chrysler is going to weed out rural dealers first. since we are in the top 1% in sales across the country & we own the land & buildings we are also in the top 1% there too. + they will most likey move the better selling models of pontiac, saturn (G6, G8, Vue..etc) under the chevy banner w/ different name...same car different emblems. it also helps a lot that we are across the street from the biggest air force base in Oklahoma'

i'm not worried at all about myself, mostly because i work in the wholesale collision end of the business + the company i work for has about 50 or so dealerships spanning just about every carline sold in the US. but, it does suck a lot of people i've known for years are now or soon will be out of a job.

[Otto 83]

Good grief - so you're saying the typical medium/large dealership has more employees than an average Wal Mart? Doing what?