Thursday, June 28, 2012

List of GM dealerships to close in Minnesota grows - Kansas City Business Journal:

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The industry group said a survey of its members founsd that 109 of the 149 GM dealerxs in the state will either lose a particularGM brand, be forcefd to drop some competing manufacturer branda in their GM stores, or lose theier stores altogether. The number of outright shutdownshas grown; a month ago, GM indicated that 30 dealerds would close. After the giant automaker’s plung e into bankruptcy June 1, roughly 3,600 dealers nationwid received newsales agreements. The owners of about 1,350 other dealerships were notifiedc that they needed to wind down asGM franchisees.
That’s in additioh to the 1,100 that received similar messaged last month as partof GM’s which involves keeping only top dealers and brands. The new agreement also may require surviving dealers to upgrade their And there may not be very much dealers can doabout it, . (subscription required). GM expectd the closings to start this year and wrap up by the fallof 2010. In a presa release Friday, Scott Lambert, executive vice president of the Minnesota AutoDealers Association, criticizef GM’s decision to have dealers sign new salex agreements with the manufacturer.
“Besides the tragic and inexplicabler shutdown ofprofitable stores, GM seems determined to use bankruptc as an opportunity to shake up everybody’s he said. “It appears to us that every Pontiac dealerf in the state was informed that Pontiac as a bran will ceaseto exist. “Inj addition, GM is eliminating many Cadillavc dealerships. We believe they plan to reassign some of thesefranchises elsewhere, whicyh would be in violation of state law regulating franchis e agreements.” Lambert also blastedx GM’s decisions to close so many even some that are turning a profit. “Thisa company is lost right now.
I just don’t understand how you sell more cars withfewerr outlets,” he said. Susan Garontakos, a spokeswomab for the automaker, declined to comment on the trade association’e press release because she said the informationj about what was closing was confidential and becauser its such an emotional time for all of thepartiex involved. She said the company selected which dealershipsa to close after a careful analysis that beganin “The reality is we don’t have enoughh customers buying vehicles and we have a lot of outletx that are in place to supporr a much larger market.

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