Complain about a product or service

GM Notifying 1,100 Dealers They're Being Dumped

Franchises set to expire by 2010

By Mark Huffman
ConsumerAffairs.com

May 15, 2009

• GM Offers Money-Back Guarantee • GM's Newest California Showroom: eBay • GM, Chrysler Personal Injury Victims Left Stranded • 'New GM" Exits Bankruptcy • Judge Greenlights GM Bankruptcy Plan • Obama Set to Sign 'Cash for Clunkers' Bill • States Challenge GM Sale • Supreme Court Okays Sale of Chrysler to Fiat • Supreme Court Blocks Chrysler Sale • GM To Scrap Medium-Duty Trucks • Penske Hopes to Drive Saturn Off GM's Lot • New Chrysler Agrees To Honor Old Lemon Law • Consumer Groups Appeal Chrysler's Lemon Law Reprieve • Dumped GM, Chrysler Dealers Not Going Away Quietly • The Hummer Lives to Fight Another Day • GM Files for Bankruptcy; Chrysler Gets Court Approval • Chrysler Sours on Lemon Law Obligations • UAW, GM Agree On New Contract • Consumer Groups Challenge Chrysler Bankruptcy • GM Notifying 1,100 Dealers They're Being Dumped • GM, Chrysler May Close 3,000 Dealers • GM Moves Up Saturn Execution, Plans to Drop 2,600 Dealers • GM Prepares to Scrap Pontiac • U.S. Carmakers Getting More Federal Aid • GM Cuts More Jobs, Eyes China --- • Consumer Complaints about GM • Consumer Complaints about Chrysler

As it rolls toward all but certain bankruptcy June 1, General Motors is notifying about 1,100 of its dealers they are losing their GM franchises.

GM confirmed Friday that the first dealerships to be closed are ones that were targeted because they are less profitable and under-capitalized. GM said their franchise agreements are set to expire by the end of 2010 and will not be renewed.

Chrysler announced Thursday that it is closing 789 dealerships as it attempts to reorganize under Chapter 11 bankruptcy protection.

GM's closings are the first of a wave of consolidations. Next will be a second reduction in showrooms when the carmaker turns its attention closing Saab, Saturn and Hummer stores. The overall number will be reduced further after GM consolidates some of its remaining dealerships.

GM did not publish a list of the dealerships it plans to terminate. Those on the chopping block were being informed Friday by an overnight letter. Dealers that don't receive a letter are being spared, at least for the time being.

It has been a remarkably fast downward spiral for the auto industry, whose sales did not seem overly week until last October's financial "meltdown." But from October onward, consumers shunned new car showrooms as they began saving instead of spending.

Industry reports new cars are now selling at an annual rate of about 10 million units a year, down from 16 million just two years ago.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

Share		Follow us on Twitter.