Auto mall avoids GM cuts

By Fred Childers - bio | email

SHREVEPORT, LA (KSLA) - 1100 dealerships throughout the country were told to start the process of ending their agreement with GM

By 2010, they'll no longer be GM dealers - after Hummer, SAAB, and Saturn lines are either sold off or eliminated, GM expects to have only 4500 dealers or less.

"Our plan is not to immediately terminate these or any dealer offer them a wind down opportunity to have a more gradual orderly wind down to get us through the remainder of 09", said Mark LaNeve, the General Motors North America Vice President Vehicle Sales, service and Marketing.

The ones culled out of a herd that gm admits got too big, according to gm, were under-performing or selling fewer than 50 vehicles a year.

"We got too little industry right now, and too little sales we have to contend with," said LaNeve.

And those who remain, like Morgan Pontiac GMC Buick, will be expected to perform better.

"We will be stronger, because there will be fewer Pontiac Buick, GM dealers over all, the ones that are here should sell more cars, hopefully make a better profit," said General Manager of Morgan Pontiac GMC Buick, Keith Marcott.

As for the vehicles that can't be sold over the next several months, GM's contracts require the manufacturer to take them off the dealership's hands.

GM faces legal battles and many challenges over the decision, one gm heads call a very serious one and a difficult one.