Blog > News > GM to Follow Chrysler, Closing Down 1100 Dealerships

GM to Follow Chrysler, Closing Down 1100 Dealerships

Posted on May 15, 2009

Auto maker General Motors (GM) announced today that it will be closing 1100 dealerships across the U.S. by 2010, or roughly 1 out of every 6 dealerships. Many of the dealerships that GM chose to shut down are the ones that primarily sell the Hummer, Saab, Saturn and Pontiac brands. Their plan is that those 4 brands will either be sold or closed by the end of 2010. GM already announced that Pontiac will stop production by 2010 and the other 3 brands will be sold. It’s likely that these dealerships can strike new deals with whoever picks up the Hummer, Saab and Saturn brands.

These 1100 closings add to the already 300 GM dealerships that have shut down due to a huge decrease in sales and the difficulty for potential buyers to get a car loan. The closings are GM’s attempt to restructure and prove to the Government that they’re a viable company. If they can’t do so by June 1st, they’ll be forced to restructure in Chapter 11 bankrupcty. Selling off the weak brands and closing all the dealerships is a step in the right direction, but I’m just still not sure if it’s too little, too late.

Categories: News

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