1,100 GM dealers receive closure notification todayMay 15th, 2009 - 10:16 pm ICT by John Le Fevre
Just one day after 789 Chrysler dealers across America were told they were no longer required, General Motors (GM) dealers nationwide are today waiting for mail deliveries to see if they too have become redundant.
Up to 1,100 of GMs almost 6,000 US dealers are expected to receive their marching orders today, with the company scheduling a press conference at midday EDT.
The cuts are part of a plan the company announced last month to reduce dealership numbers by 42 percent to 3,600 by the end of next year.
A GM source is reported by Bloombergs as saying the 1,100 dealerships currently hold about 120,000 vehicles worth about $US2.5 billion of inventory.
Up to April 24, 2009, GM had received US$15.4 billion in loans from the US Treasury Department under the Troubled Assets Relief Program (TARP), but a government-set deadline means GM faces probable bankruptcy by June 1 if it fails to complete restructuring and improve viability in accordance with the demands of US President Barack Obama.
If the same figure of 48 employees per dealership that was quoted by the National Automobile Dealers Association is applied to the GM closures, today mail could signal up to an extra 52,800 people loosing their jobs in the weeks ahead.
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- GM dealership closure list not released - May 15, 2009
- GM makes huge dealer cuts, follows move by Chrysler - May 16, 2009
- GM borrows $4 billion more from US government - May 23, 2009
- General Motors prepares for historic bankruptcy - May 30, 2009
- GM in last-ditch talks to avoid bankruptcy as deadline looms (Lead) - May 23, 2009
- Chrysler repays $7.6 bn to US, Canada - May 25, 2011
- GM Issues Recall Of 1.5 Million Cars - Jun 09, 2010
- Italy's Fiat dealers in for a sad Christmas - Dec 24, 2010
- U.S. auto industry recovers dramatically in one year - Apr 22, 2010
- GM Comeback Lauded By President Barack Obama - Nov 19, 2010
- 789 Chrysler Dealerships Closing - May 15, 2009
- Fiat to expand presence in Indian market - May 09, 2012
- President Obama to visit Chrysler and General Motors plants in Detroit and Chicago - Jul 24, 2010
- GM announces new cost cuts, axes Pontiac for survival - Apr 27, 2009
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