NADA to GM: Bad, Bad GM

As a result of the announcement made by American manufacturer GM regarding its plans to scrap Pontiac and perhaps even Saturn, as well as the decision to severely slash its dealer network, the National Automobile Dealers Association (NADA) has issued a release stating its surprise, disappointment and concern.

"GM's decision to radically cut its dealer network over the next 18 months comes as a surprise. We understand the realities of current market conditions. But nevertheless, we feel a strong sense of disappointment that GM has, for whatever reason, decided to accelerate dealer consolidation in such a drastic way," John McEleney, NADA chairman said in the release.

The official accuses GM it was short on details when announcing the decision to step up the dealership closures. McEleney said that by closing 2,641 dealers in 18 months (instead of the initial 5 years), GM will lose an estimated $35 billion in sales revenue. As a direct result of the closures, 137,330 people will lose their jobs, adding a $1.7 billion in sales tax revenue to the money lost.

"Despite these tough economic times, NADA and its dealer members will continue to work to ensure the future viability of the auto industry," added McEleney.

As for the Pontiac deal, the news comes as a disappointment, but not as a surprise, given that the manufacturer already hinted that in the best scenario, Pontiac will remain a niche brand.

"NADA's main concern is that GM treats each of its Pontiac dealers fairly and equitably. The other most important concern is for Pontiac owners. Dealers have been reassured by GM that going forward, all warranties will be honored and necessary parts and service will continue to be available," NADA stated.