NADA Hopes GM's Bankruptcy Will Be Fast

General Motors' bankruptcy filing has surely caused quite a stir in the United States, with the National Automobile Dealers Association (NADA) expressing its disappointment towards the company's collapsing business. In fact, NADA emphasized its point of view in a statement published today, claiming GM's decision "marks a historically sad day".

However, NADA underlined that it is extremely important for the newly-formed GM to get out of the bankruptcy state as soon as possible in order to minimize the consequences over the auto sector.

"Obviously, this was not a preferred option. But the key now is to get out of bankruptcy as quickly as possible. Since NADA represents all dealers - both domestic and international - our concern is to minimize disruption to the entire auto industry," it said in a release

"The bankruptcy court also should take special care not to trample on recognized rights under state franchise laws. GM dealers are independent business owners, men and women who have invested millions in their facilities and are the cornerstones of the economies in their local communities."

Talking about GM's dealership cut, NADA said it still doesn't agree with the company's decision to reduce the dealer count in the United States, especially because "it is the GM dealer who purchases GM vehicles to sell to the public."

"By cutting its dealers, GM is cutting its own customer base. In addition, fewer dealerships mean less convenience and less competition and more unemployment. Therefore, drastic closures of dealerships on the scale that GM announced are bad for the economy, bad for GM and bad for the consumer," it explained.