GM Sheds Dealerships

According to the Today Show the number of GM dealers included in the closing list is 1200, however; ABC News reports 1100, and the Midland Business Journal reports 1154. This is not a small difference. When you consider that each GM dealership may be employing 10 to 20 people or more, we are talking about 1000 to 2000 more families possibly going unemployed around the nation.

The Pacific Business News referring to the GM CEO Fritz Henderson writes that the company sent out the notices on Friday, as GM attempts to cuts its U.S. network by 50percent. Reuters writes that GM has not said how many dealerships will be closed and how many jobs will be lost when it sheds the Saturn, Hummer and Saab brands and how many would fold due to financial strain, but a sale of Hummer and Saab would be required prior to June 1. In the past GM has kept pushing back the announcement of any Saturn, Hummer or Saab brands trying to get the best possible deal.

During a recent Hummer dealer advisory call, Jim Taylor was on the call along with Mark McNabb [vice president of the Cadillac-Hummer-Saab channel]. They all signed confidentially agreements. So he [Taylor] is in a position that is very difficult for him to give any kind of details.

GM has already announced the termination of the Pontiac brand. GM has 35 standalone Pontiac stores in the United States with combined inventory of just 1,500 units. "We have some dealerships that have less than 10 units on the ground," Susan Docherty, vice president of Buick-Pontiac-GMC, said in an interview today with Automotive News. "They might contact us and say we're ready to terminate on our own."