GM Lends Dealers a Hand...

...or at least a finger. As a result of the manufacturer's decision to step up the closure of 2,641 dealers in 18 months instead of the initial 5 years (most of them for the soon to be extinct Pontiac), GM has already been criticized by the National Automobile Dealers Association (NADA). As John McEleney, NADA chairman said, it would be a nice gesture from GM to treat "each of its Pontiac dealers fairly and equitably".

GM seems to have taken note of the distress it caused to the involved parties and came up with a solution. For the 1,200 dealerships which will not receive franchise agreement extensions, GM will repurchase the vehicles and parts still on stock at that time. Still no compensation will be given to the respective dealers.

"There was no money for anything other than what the franchise agreement calls for - meaning we can send back new cars, parts, special tools and some signage," Mark LaNeve, GM sales chief was quoted as saying by Autonews.

The official also specified how the closure will take place. By the end of the year, 500 dealerships will be closed out of normal attrition. Another 500 dealers will be closed as a result of Hummer, Saab and Saturn selling. An additional 35 stand-alone dealerships will be closed as a result of the Pontiac killing.

"I look at that last group as more than likely we will get involved with the dealers who are going forward with GM and work with them as buy-sells and consolidations," LaNeve added.

The human cost of the cost cutting measures drafted by GM amount to 137,330 people placing themselves in unemployment lines.
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About the author: Daniel Patrascu
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Daniel loves writing (or so he claims), and he uses this skill to offer readers a "behind the scenes" look at the automotive industry. He also enjoys talking about space exploration and robots, because in his view the only way forward for humanity is away from this planet, in metal bodies.
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