General Motors confirmed today that it will alert about 1,100 of its United States dealers that it does not intend to renew its contracts after October 2010. Though the automaker says it does not plan to release a list of dealers to be closed – like Chrysler had to do as part of a court filing – the dealers themselves will be free to make announcements.
The well-publicized dealership cut is in addition to the 470 Saturn, Hummer and Saab retail outlets that will be removed from the automaker’s umbrella when those brands are sold later this year. A buyer is expected for Saab in the next six weeks and Saturn and Hummer are both negotiating with a number of interested parties.
“It is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient.†said Mark LaNeve, GM Vice President of Sales Service and Marketing, in a statement released by the automaker.
GM says it plans to reduce its network from 5,969 dealers to 3,600 by the end of 2010. The automaker says that the 1,100 dealers it will cut are “underperforming and very small sales volume” retail outlets.
