From Bloomberg:
AS GM prepares for bankruptcy, they told 1000 “underperforming US dealers they will be terminated. Most of the closings will occur by October 2010, none are happening now.
Its the first step towards “paring” dealers to a range of 3,600 to 4,000 from 5,969 by the end of 2010. With fewer retailers, the survivors may each be able to sell more cars at higher prices, boosting profit
.
“It’s a cruel day, but it’s one of the casualties of the situation,” said Mike Robinet, a CSM Worldwide Inc. analyst in Northville, Michigan. “Dealers in some respect were a fairly substantial reason that Chrysler had to go into bankruptcy and a very good reason why GM will need to go in as well.”
“It’s quite an emotional day,” said Wyman Williams, 61, who was waiting to learn whether his Williams Motors in Commerce, Texas, was being targeted. “We’ve been here 40 years, and what happens today is really important.”
He said he filed for Chapter 11 protection on April 1 for his Chevrolet-Pontiac-Buick store. “It was a necessity, but it worked out as a defensive move,” Williams said. “There’s a judge between GM and me.”
