The current economic downturn has been difficult for all automakers, but has been particularly rough on the Big Three. Sales continue to slide by the day, with 2009’s outlook getting darker by the day. It looks like General Motors will be able to sidestep bankruptcy, but the U.S.’ number one automaker recently warned its dealer network to expect a sharp decline in profits.

In a meeting with dealers last week, GM vice president of Service and Parts Operations Doug Herberger warned that dealer profits will likely fall by an average of $199,000 per store this year. That’s about an 18 percent drop from a year earlier, according to Automotive News.

GM’s president for North America, Troy Clarke, added that GM is taking “the tough but necessary actions to position the company, and you, for future success,” but the overall message of the meeting was rather somber.

U.S. auto sales have fallen to 15-year lows, with the hangover expected to last well into 2009. GM had been hopeful that its North American turnaround could be complete by 2009, but that goal likely won’t be reached until 2010 at the earliest.

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