GM Axes 1100 dealers with 1300 more to come by Oct 10
- Thread starter Wesley
- Start date
Do we know which local dealers are affected yet? I know there's been speculation, didn't know if there's any sort of an official list yet like Chrysler?
Funny thing on that Chrylser list...... Mickey Dodge in CR got cut, but the McGrath (formerly Pontiac)/Jeep dealer has been told they may have the option to pick up the Dodge and Chrysler lines. I can't imagine how that is fair??? Mickey Dodge has been around forever and they're going to cut them to give someone else the line? I see lots of lawsuits in Chrysler's future.
Silly question....Could some of these lots stay open and just sell used cars?
GM is not releasing a master list like Chrysler did. They're leaving it up to individual dealers to disclose the information.
GM also kept employing a lot of families longer than they should have. They haven't been viable for a while.
Yes, that would be an option for them. They still may have to downsize unless they are able to increase the volume of used cars they are selling. They could keep the service department open too, but would lose at least the warrenty and recall work.
Ok, stupid question time. What happens to all the cars? Going-out-of-business sales?
My wife works in automobile advertizing and talks to car dealers every day. From what they tell her, the real profit is in selling used cars and not new ones.
The Chrysler thread seemed to do ok and has remained out of the cave. Strive to keep this one out of the cave as well.
If you'd like to discuss the political ramifications and causes of 1100 dealers getting das boot, open a thread in the cave.
GM paid a billion to losing dealerships jetison Oldsmobile line. They will not pay for pontiac except in the courtroom.
I think I read that Chrysler would buy them back and move them to a dealer that is still in business, but don't quote me on that. I think there is a hard date where the Chrysler dealers lose their franchise.
It sounds like GM is going to try to phase out the dealers more gradually, so we will have to wait and see.
News today said that Chrysler had no intention of buying vehicles back, meaning dealers get to sell them at auction for a nice loss.
I was thinking the same thing yesterday. With the used car market being the hot thing right now, you would have to assume that would be the case. Especially if they own the building they are currently in.
