General Motors has begun notifying 1,124 dealerships that their franchise agreements will probably not be extended past October 2010. Unlike Chrysler, though, GM will not release a list of those dealers, but they'll undoubtedly come out of the woodwork as the day wears on. Bloomberg is already reporting that six Autonation dealerships will be getting letters.
The affected dealerships will be getting further details on how to wind down their business after June 1, Edmunds Auto Observer reported. At that point, of course, GM may have already filed for bankruptcy.
Note that these 1,124 dealers do not include the 470 already scheduled to close when GM drops Hummer, Saab and Saturn. Further, GM would have to shed another 775 dealerships to meet its goal of trimming its dealer base from 5,969 (prior to today's announcement) to 3,600 by the end of 2010.
GM Statement Regarding Dealer Network Communications
Auto Observer: GM Looking for Orderly Wind Down of 1,100 Dealers
Automotive News: GM termination plan sent to 1,124 dealerships; appeals allowed (sub.req)
Bloomberg: GM Starts Notifying 1,100 U.S. Dealers to Be Closed
estreka says:
03:33 PM, 05/15/09
I'm surprised GM is already announcing dealer cuts. They aren't in bankruptcy protection just yet, which means they're liable for declaring cuts, which means they can be, and will be, sued.