GM Forced to Disclose Dealerships Targeted for Closing

Although General Motors initially planned to keep the names of dealerships to be rejected away from public eyes, the American automaker might be forced after all to reveal the list of closed stores. The news comes after Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va, asked GM's CEO Fritz Henderson to provide the list of those to be closed plus the cost savings that would be resulted from the cut, Autonews reported.

Fritz Henderson initially denied the request, saying that dealers would like to remain anonymous. "We're giving them a 12-to-15-month window to decide what to do with their business," he said. However, after further negotiations, he agreed to provide the information. Additionally, Chrysler President Jim Press will also supply the list of the 789 dealerships to be discontinued.

"The end result will be between 3,800 and 3,500 U.S. GM dealers by the end of 2010, depending on attrition levels, with a retail market share of 17.3 percent in a retail sales market of just over 10 million," Henderson commented on the dealership cut.

Obviously, NADA could not remain indifferent to the matter and once again criticized the two automakers for the drastic dealership cut they recently announced.

"We don't understand how these drastic dealer reductions will increase the viability of GM and Chrysler," said John McEleney, chairman of the National Automobile Dealers Association.

"Far from being a burden to the manufacturer it represents, the automobile dealer supports the manufacturer's efforts by providing a vast distribution channel that allows for efficient flow of the manufacturer's product to the public at virtually no cost to the manufacturer."