Soon enough you'll really begin to see the results of the dire situation for both GM and Chrysler. All the major news outlets are reporting this morning that both companies are expecting to cut up to 1,000 dealerships each by Friday. Reuters, though, reports that GM could drop as many as 2,000 dealers this week
For GM, this is part of the planned 2,600 dealers to be cut by the end of 2010. At the end of 2008, it had 6,246 dealers, Automotive News reports.
Cutting 1,000 Chrysler dealerships would consume nearly a third of a network that numbers 3,189. Then again, there's obvious and legitimate concern that Chrysler might soon not have much product to put on dealer lots anyway as it wastes away in bankruptcy court.
Automotive News: About 1,000 GM Dealers to Get Warning Letters by Friday (sub.req)
Reuters: GM, Chrysler to cut up to 3,000 dealers: sources
Detroit News: Auto dealer angst: Waiting for the ax to fall
firstwagon says:
07:47 AM, 05/14/09
"as it wastes away in bankruptcy court."
You should rephrase that to read...
"as it gets rid of the wastes in bankruptcy court"
Chrysler still sells lots of cars but (like some other car makers) the overhead is so huge, they can't make any money doing it. There are 4 Chrysler dealers within 15 minutes of my house. Two of them are across the street from each other. Changes have to be made and not just in the product line.
Hopefully they will come out of this with a company where the money can go to product design and not endless other concerns.
iskch says:
08:09 AM, 05/14/09
I wonder if the under performing dealers that do get the ax have the option to switch to another brand. I mean, I'm not going to sit around and wait. I'll have a backup plan.
stovt001 says:
08:43 AM, 05/14/09
Finally getting a chance to axe dealers that are giving GM and Chrysler bad names for customer service is desperately needed for both companies. That so many awful dealerships were allowed to poorly represent the manufacturers without repercussions indicates that we need to rethink our franchise laws.
estreka says:
11:58 AM, 05/14/09
My friend, I have not yet begun to sue!
hondacura4 says:
02:00 PM, 05/14/09
I willing to bet the small GMC/Chevy/Buick dealer in my small town (Versailles, Ky) will be one of the ones to loose their contract. Its sad but there are WAAAAY to many GM dealers in these parts selling the same brands.