The whole story is quite simple: GM plans to reduce the total dealership count because some of them "have very specific issues" which could block the company from achieving its sales goals.
Sales chief Mark LaNeve has already confirmed the report and added that some of the dealers to be shreded might be chosen because they are unable to achieve their sales targets. However, an official statement on when and who will be rejected is yet to be announced.
General Motors announced in May that contracts of some 1,100 dealerships across the United States will be rejected by the end of 2010, in a move meant to reduce the total count to 3,600.
“We have said from the beginning that our dealers are not a problem but an asset for General Motors,” said Mark LaNeve, GM Vice President of Sales Service and Marketing. “However it is imperative that a healthy, viable GM have a healthy, viable dealer body that can not only survive but prosper during cyclical downturns. It is obvious that almost all parts of GM, including the dealer body, must get smaller and more efficient."
At that time, General Motors emphasized that all dealers will receive their very own chance to continue operations, with the remaining stores to concentrate on the four core brands, Chevrolet, Buick, GMC and Cadillac.