The National Auto Dealers Association will meet with the Obama administration’s auto industry task force today in Washington, D.C., in order to attempt to persuade the government against shutting down dealerships and forcing General Motors and Chrysler into bankruptcy.
“Eliminating dealers at a rapid rate does nothing to save GM any money in the near term,” John McEleney, chairman of the National Auto Dealers Association, told Automotive News.
GM has said it plans to reduce its dealer count by about one third by 2014, though rumors out of Detroit suggest that plan has actually been accelerated. The Obama administration has indicated its strong support of reducing the dealer count for both GM and Chrysler .
“But we think they should let market forces decide,” said McEleney.
Of the approximately 19,000 new car dealers in North America, about 6,200 sell GM products.
