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GM Dealer Closing List: 1,100 General Motors Dealerships
General Motors, in its continued attempt to become solvent, is closing 1,100 dealerships, and has already begun to alert those affected. There is no public list of the closures yet. This announcement comes on the heels of Chrysler's closure announcement yesterday.
We'll post a link to the full dealer closing list as it becomes available.
Last month, GM had announced that it would be closing 2,600 dealerships overall by 2010, and this is the first round of those closures.
While these closures will give some relief to GM, their effect on the dealerships' communities will not be so positive, as many find themselves out of work.
GM spokeswoman Susan Garontakos said the company will not make public a list of dealers to be cut, leaving the decision to release information to individual business owners.
See also: Chrysler Dealerships Closing: Full List of 789 Dealers
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Most RecentMost Recommended Comments (143)
at 17:25 on May 16th, 2009
Because you don't need taco'sn a war.
You do have to have the ability to produce vehicles though.
Hello?
at 16:36 on May 17th, 2009
The auto makers aren't going to be retooled to build military vehicles if a war breaks out anyways, things are just too specialized now, the only reason it happened in the world wars is because we didn't really have enough military equipment to begin with.
at 21:04 on May 22nd, 2009
America will still make war machines and guns. The killing business is doing well.
at 11:46 on May 15th, 2009
Hey Sam. Closing a dealership itself does not help GM. But it doesn't hurt GM either. It is necessary for what GM plans on doing next...which is get smart about marketing. GM has had the philosophy of "build it and they will come...and when they don't we'll offer them $10,000 and they will come." You never hear about Honda or Toyota giving huge rebates. It's because you can't give those rebates, pay $40 - $80/hr to workers, and be profitable. Honda and Toyota build for the demand. It's what GM plans on doing from here on out. But they still want "full lots" for people to browse in. With fewer dealerships, they will still have full lots and they won't have to offer huge rebates to move them. Dealers will still want to order more inventory. And this train will keep chugging along. I am a Chevy salesman so this isn't some outsider opinion, but it is still my opinion. It makes sense, even though my job is on the line.
at 13:12 on May 15th, 2009
Rob,
Here's why it seems like closing dealers is counter productive for GM:
1. Less dealers make it more likely I would go to the competitor; especially if the competitor is more conviently located..
2. Less salesmen make less sales.
3. Mechanics have to be trained and the corporate Training Center is quite profitable for most mfg enterprises.
at 12:03 on May 15th, 2009
I don't understand how closing dealerships will help GM or Chrysler. Yes they'll have to make less cars, but will also have less dealers selling products! It's like eliminating sales people, you might save some hard cost, but in the long run you've got less people selling! And it will cost twice as much to reopen them..The idiots rule again..
at 12:22 on May 15th, 2009
Its sad to see so many lose their jobs, but it is necessary to reduce the overindulgence that has been GM. Once they are lean and mean again, they just might make it. I only fear they will move too slow. States should tax based on the size and MPG of the car, not on the value. It makes more sense and then GM can move to smaller, better cars than foreign.
Chop, Chop, Chop should be the rally cry!
at 12:32 on May 15th, 2009
Bush was part of the problem, but it goes back to Clinton and all the idiots in congress that wanted to give out loans that people couldn't afford. The banks went along with it and now here we sit. I am a GM die hard but if they ever went under I would switch to Ford before I will ever own a foreign car or pick up. Ford and GM did have there share of qaulity issues and do deserve some blame, but their new cars and trucks are just as reliable as the toyota and honda's out there.
at 18:16 on May 15th, 2009
Thank you! If more Americans supported American companies by purchasing their products and services we would be in a better position and less Americans would be out of work.
at 05:41 on May 16th, 2009
Look up The Community reinvestment act. It started in 1977, was made stronger in 1991 and the Democrats defended it clear up till it fell apart.
The Republican made a couple attemps to correct it but were called raciest and they didn't have the guts to follow through.
Small banks were selling their bad paper up the line till the market stagnated then the house of cards fell.
It all worked well until the housing market stagnated then people could not move their houses and the banking industry caved and the Insurance companies that Insured them collapsed.
at 12:36 on May 15th, 2009
I am semi-retired from my own businesses ( yes, plural) and work part-time at a GM Dealership in service as well as with a HUGE retailer. Both are on shaky ground and, while I'm at both places for "something to keep me occupied", I feel bad for ones who depend on these places for their living.
This is NOT going to get any better... and Obama, Bush, even Clownton are not to blame. All 3 inherited a mess that they couldn't deal with and it will only get worse.
The real culprit??? Greed.
I'm only glad that I'm closer to the end than the beginning in age. I feel especially bad for the 0-35 crowd. They are about to get a wake-up call to hard times. The fun days are over.
at 13:10 on May 15th, 2009
Let's face truth! UAW greed is the reason the American auto industry has collapsed.
With the UAW owning the 55% of Chrysler and who knows what percentage of GM, I will never buy either again!
at 13:18 on May 15th, 2009
The unions are only part. Probably not the big part.
Poor management with short time objectives are a major part.
Think about this. For about 100 years GM made BILLIONS of profit. Where did it all go?
Answer: union pay, excess labor, non productive assets, exec bonuses, more dividends than should have been paid in order to jack up the stock. In summary poor management.
They should have saved some for a rainy day. Invested better.
at 13:46 on May 15th, 2009
I have been in the car sales business since 1985. Raised two children, put them through college and at the same time I put lots of money away.
For many years we in this industry have complained about having a GM dealership on every corner. And I've heard the same thing about ford.
Now that the reality of the situation is upon us, many are crying the blues. We as americans have to accept the responsibility of this sorry situation that we are now in. We all stood by and did nothing as we went on a witch hunt for the weapons of mass distruction in Iraq. Little did we know that those weapons of mass distruction lived and breathed in Washington DC. Bush and Cheney. The two of them invested in oil and allowed the prices to climb while filling their cars and planes using our government issued credit cards. And supplied our troops with supplies that are manufactered by their own companies. And only God knows what else they have gotten away with over the last 8 years. It will all come out in time.
Let's not now place the blame on Mr. Obama. Let us move forward just like Toyota, continuous improvement. Stopping the assembly line of waste, fraud and misuse of power. We must invest in America now, now matter the dollar amount because once we are back on top, and we will get there. Our children will prosper and smile knowing that we made the sacrifices for them today.
We'll get through this and on the otherside, we'll be stronger and more productive than we have ever been.
We have witnessed more history in this year than any other Americans before us. It takes gutts to move in the right direction during troubled times. President Obama is a symbol of how much we are willing to take the difficult road in order to get through the rough waters.
Learn from the past. We Americans will all grow stronger, together as one nation. No longer divided.
If you have lost your job with a GM or Chrysler company, remember that many soldiers, sailors and marines and their families have lost much more than you will ever give. You can still survive and you will.
Bryan
at 05:59 on May 18th, 2009
All I can say is.....AMEN!
at 06:33 on May 20th, 2009
Did you take any air in with your kool aid?
at 13:46 on May 15th, 2009
Historically, it's the dealers that deserve the blame. Back in the 80's the quality SUCKed -- even Lee Iacocca admitted this (in his book). I've been in the car business for 30 years, and back then the factories DID build cars that had not been ordered by dealers, and factory reps would pressure dealers to take them. It kept the factories humming, but led to a glut of inventory.
Here's what you DON'T hear much about. The under-funded pensions !!
How did GM, Chrysler (and I assume Ford but I have not heard confirmation) get $20+ BILLION behind in pension contributions? I beleive GM's is TWENTY BILLION. How did this happen? OTHER industries are REQUIRED to make payments into their pension plans !!
The auto manufacturer's didn't make the payments...and the Government over several administrations ALLOWED THIS TO HAPPEN. This is a DISGRACE.
If the manufacturers had made the payments when they were supposed to:
1) they wouldn't be in financial crises today (at least not as much)
2) their financial difficulties would have been dealt with in the past
3) the financial futures of there workers and retirees would not be in doubt
The UAW took over a lot of this...but with GM and Chrysler 'bailing' what's likely to happen sooner or later, is this immense obligation is going to fall on the Taxpayers to clean up.
Yes, the automakers did this to themselves. Partially by not reacting quickly enough to changing markets. Partially by not paying into pension/healthcare funds as they went along. Partially by having too much duplication among brands (i.e. Chevy Vega; Pontiac Astre -- Ford Maverick; Mercury Comet). But to a degree...the goverment ALLOWED this to happen.
Closing dealerships doesn't help the factories much. They'll need fewer field people to work with fewer stores in a geographic area...that's not much. Who will benefit will be the dealers that survive. They'll have greater volume (hopefully!) and can benefit from efficiencies of scale in advertising costs, etc.
at 14:05 on May 15th, 2009
I work for a Toyota Dealer in California. Closing Dealerships are going to hurt their Bottom line. Yes those dealerships may not be performing to the standards that the factories think they should, but what they dont realize is those dealers are still selling cars, parts and services. They need to look inside the UAW and have the union take some consessions. Until they do this, the domestic dealers are not going to get any better.
at 14:19 on May 15th, 2009
Conkle Pontiac Dealership, of Kokomo,Indiana closed over the banking crisis before GM decided to close many of them
HOGANSWORLD has contributed a photo to this story.
at 14:46 on May 15th, 2009
"Little did we know that those weapons of mass distruction lived and breathed in Washington DC. Bush and Cheney."Hey guy look up this:
http://www.msnbc.msn.com/id/25546334/
Secret U.S. mission hauls uranium from Iraq Last major stockpile from Saddam's nuclear efforts arrives in Canada
Media brainwashed people surprised.
at 16:02 on May 15th, 2009
Sorry Francis but this is old yellowcake that the UN knew about. Read paragraph 12. The concern about this stockpile was that the insurgents would get it and sell it to Iran (paragraph 2)
at 15:24 on May 15th, 2009
I am the wife of a Chrysler dealership parts manager for one of the biggest dealerships in the Northeast. In fact we met while I was also working in the service department for a Chrysler dealer that is long out of business over 20 years ago. He has been working for the "highest bidder" now for over 35 years in the business for car new dealers. Working for BOTH GM and Chrysler at different times. I have been watching all this nonsence in the various dealerships he has been woring for, from my home based businesses now for such a long time now.
I have personally witnessed how the OWNERS of these dealerships have completely mismanaged these dealerships and run them into the ground. The owners live lavish lifestyles, sucking the life and money out of the dealerships they own, like it were their own personal cash cow. They manipulate the floor plan(cars on the lot), over charge the customers in some cases 400% markup on Parts. $100 hour for Labor. AND, even when they are selling the most popular cars on the lot that everyone wants like the Viper, Challenger, Charger and GTO models, the dealers take the sticker price of lets say for example, 40K and then mark it up to 80K, Yes, DOUBLE THE STICKER PRICE, and believe it or not, people buy them at that price! Yes, this is really happening! Don't you think if they take that same car and sell them at the sticker price, and make alot more of them, that they would have alot more sales of cars that people want? Duhhh. its not rocket science. The dealerships are marking up those cars beyond what most people are willing to pay for them. So, in fact they do have cars that people want to buy, but, it doesn't seem as if the dealerships want to sell them. Most of the personel in the dealership my husband works at are treated very poorly. The department my husband works in,. the personel is not allowed lunch breaks, and work 11 - 12 hours straight. He is made to work his days off many occaisions, and when anyone in the department attepts to call in sick, he is instructed by the owner to inform them if they don't come into work, they will be fired. In the two years that he has been at this mega dealership, some of their best employess have walked out the door. The owners of these dealerships are NOT interested in the employees or the customers, they are just interested in filling their pockets, by ripping off the customers and employees. With 35 techs, and a huge parts business, The money just keeps coming in for these owners. And yes, with this place so close to NYC, the business just keep rolling on no matter how ugly it gets for the employees. And no, this dealship is NOT on the chopping block. Unfortunately hubby was lied to by the owner when he was hired and quit his last job to go there, so, he has been looking for another job ever since. But, now, all this bankruptcy has happened, and the economy is miserable. And he is ready to drop from sheer exhaustion now. This job has pretty much destroyed his life as it was. I am glad, I work 2 jobs from my home.
at 15:53 on May 15th, 2009
You, my dear are an illiterate moron.
at 13:55 on May 16th, 2009
Wow, isn't that a clever response on your part, Amos.
at 15:44 on May 15th, 2009
The public is so bull#@$% tha imports are better its pathetic, I work for a Toyota Dealer and own two domestic cars I bought new and had zero problems with! I sell rice and BUY AMERICAN!
at 10:25 on June 16th, 2009
Why buy American? It sounds like you promote failure of the American products in your line of work anyhow. I started out buying all American but now own 5 foreign vehicles not only for performance but comfort also. I'm not against American products but it might be time for some of these big companies to go under so they can be replaced by ones that are willing to earn my patronage.
at 15:48 on May 15th, 2009
GM closing dealerships helps them a great deal. If they close all the rural area dealerships, and people need warranty work, guess what there is no dealer to perform it therefore GM does not have to warranty the vehicle. In my case if I need warranty work and they close my local dealership it is 175 Miles to the next nearest dealership therefore I would have to pay to have the vehicle towed to the dealership make arrangement to get there and get the vehicle home. Loose two or three days of work, etc. etc. That is why they are closing dealerships.
at 15:48 on May 15th, 2009
Chrysler wife, It's the dealers money invested, Invest 10 to 35 million and than talk.
at 15:52 on May 15th, 2009
Hey Chrysler wife......Why dont you give everything you own back to the dealer, Your hubby has been being paid on that dealers gross profit so please think before you speak!!!!!!!!
at 17:08 on May 15th, 2009
I dont feel sorry for GM or Chrysler . I own an Uplander and this things is made of cheap materials or parts . If i had money i would buy Honda or Toyota ..