Tuesday, May 19, 2009

GM will close its large-scale reduction of 1100 dealers

U.S. General Motors Corporation announced on May 15, as required by the implementation of the federal government on June 1 in the completion of the reorganization plan as an important step, the company will be in October 2010 in the United States prior to the closure of its 1100 domestic car dealers.

A spokesman for General Motors Corp. said Susan, the company has informed the relevant distributor 1100 in the October 2010 distribution agreement will expire no longer continue to work with its distribution contracts signed. General Motors Corp. also announced that it would close the 500 distribution Hummer, Saab, Saturn's brand dealers, etc., may also be shut down operation of 400-500 dealers of other GM brands.

General Motors Corporation in 2010 to 5969 car dealer down to about 3600, and has been informed of this plan the federal government. GM North America vice president of marketing Marc Neff said, the benefit of the reduction of dealer's long-term development. According to the American Automobile Dealers Association estimates that sales of GM's reduction plan will lead to 137,000 people are unemployed, and federal and local governments will lose tax revenue 1.7 billion U.S. dollars. At the same time, General Motors Corp. will own 35 billion U.S. dollars of loss of income distribution.

Has filed for bankruptcy protection in the United States the third largest car manufacturer Chrysler announced May 14 the reduction of its 789 auto dealers.

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