General Motors is telling about 1,100 dealers on Friday that they will lose their franchises by late next year.
Unlike Chrysler, which on Thursday released a list of 789 dealers that it was cutting loose, G.M. does not plan to announce publicly the dealers that it no longer wants. Dealers whose franchises will not be renewed after October 2010 will receive a letter informing them of the decision.

http://www.nytimes.com/2009/05/16/business/16auto.html?hp

Some chrysler dealers only sold about 100 vehicles for the whole year. How can Chrysler justify allowing them to remain open. That would be a large loss right there for each one.

Not really any news here.

The question will be who is getting cut.

I hope my dealer makes it. they do a gear job but are a old style store with a medium volume. They are also only two stores and not a big chain. They do a hell of a good job!.

Looking at the list of Chrysler dealers in Ohio, seems most of them were in small towns or burbs bordering the bigger cities. I would imagine those sold a pretty small volume.

Just hope my Chevy dealer makes the cut. Not only did I get my cat there but my company services some of there equipment. I would get a double whammy.

Here is a copy of a letter that a GM dealer received.

http://llnw.static.cbslocal.com/station/national/docs/2009/05/GMdealerletter.pdf

My emplyer,a Buick store mixed in with 4 import brands,dodged the bullet so far.I was watching a video on the GM network and they indicated that of the approximately 4300 dealers that didn't receive a letter today,about 10% will be monitored for continuing success(i.e. profitability and CSI scores among the criteria)and may be jettisoned later.So right now we're happy.

So far I think this “phasing” is a good way for GM to go about this - it gives time for the conditions of the notified dealerships to change. AND this world is changing.

If I were GM I would not just look at sales of new vehicles, but the service parts sold too. I am in an area that as of yesterday's notice to Chrysler will have absolutely NO “new” car dealers left. The dodge dealership was the last. The Chevy, GM, GM Truck, Jeep, Dodge, Nissan dealers are all gone, Toyota & VW never did have dealerships.

This leaves a large gap that somebody is going to fill, it can't be just used car dealers. What peeves me is that a dealership could be good at service or located “locally” and poor on sales. This in my mind does not distract from the “Brand”.

Getting local Warranty service will be impacted by this decision.

Of course all this could/would change when GM actually enters bankruptcy.

My emplyer,a Buick store mixed in with 4 import brands,dodged the bullet so far.I was watching a video on the GM network and they indicated that of the approximately 4300 dealers that didn't receive a letter today,about 10% will be monitored for continuing success(i.e. profitability and CSI scores among the criteria)and may be jettisoned later.So right now we're happy.

All right brother, glad to hear this! :thumb:

I think GM made a wise decision by not releasing the names of the terminated dealerships. I think GM want the dealerships to enter negociations between them, and, finally, they might be able to reorganize by themselves. GM don't want to cut their throat (well.. not yet).

Have read a couple of good pieces about how GM ended up with such a high number of dealerships (an aggressive approach in the '70s and '80s to counter the rapid rise in Toyota, Datsun/Nissan, etc.). This approach is certainly not effective in a market that has changed as significantly as the US auto market has. GM (and, some say, Ford too) is top-heavy in dealerships and this is a major weight around their necks. While I certainly hate to see good, established dealerships being closed and people losing their jobs, I have to hope that trimming down this part of their business will benefit everyone in the long term.

Here is a copy of a letter that a GM dealer received.

http://llnw.static.cbslocal.com/station/national/docs/2009/05/GMdealerletter.pdf

on the news here in kansas city. there was a dealership that said they got that letter.

I seen a blurb on the financial news that even after GM eliminates all of these dealerships, they will still have more in the US than Toyota. Although I hate to see any business shut down, if this is true, maybe there is some sense to this.

Unfortunately, GM and the Big 3 used the "more is better" concept to counter the import threat. In hindsight, they would probably agree that they would have been better off to address the competition by increasing their focus on dealership and service department quality and improving the customer experience. I believe one of the major things that the Big 3 will have to address if they are to survive all this is exactly that -- the customer experience, from the moment they step on to the dealership property through their entire ownership experience with the purchased vehicle.

Might want to keep in mind this is just a start of a bigger change in the future. I expect to see many different ways cars will be sold in the future.

The days of sitting down with a salesman at the dealer may be numbered.

Companies from China are already exploring selling cars through big box retailers. There are ever more plans out there.

It may come to a time the dealers will become a delivery,service and warranty station nothing more.

The present sales system is very inefficent for today and someone will figure out a way to make it more profitable for all involved.

I purchased my HHR SS with E mail. I did not enter the dealer till I had my price and my SS was on the grounds.

Might want to keep in mind this is just a start of a bigger change in the future. I expect to see many different ways cars will be sold in the future.

The days of sitting down with a salesman at the dealer may be numbered.

Companies from China are already exploring selling cars through big box retailers. There are ever more plans out there.

It may come to a time the dealers will become a delivery,service and warranty station nothing more.

The present sales system is very inefficent for today and someone will figure out a way to make it more profitable for all involved.

I purchased my HHR SS with E mail. I did not enter the dealer till I had my price and my SS was on the grounds.


just like the full service gas station........ to pump your own..
self check out lines at the stores.

no real person........ where is the robots...

just like the full service gas station........ to pump your own..
self check out lines at the stores.

no real person........ where is the robots...

Then again, when I purchase a car, there's nothing like a real handshake to seal the deal. :D

I bought the last 4 cars from the same salesman, and I know if i have a problem with a warranty claim, I know he's gonna take care of this with the service department. It happened many times.

If you are reading this , you are the resistance. :lol:

Then again, when I purchase a car, there's nothing like a real handshake to seal the deal. :D

I bought the last 4 cars from the same salesman, and I know if i have a problem with a warranty claim, I know he's gonna take care of this with the service department. It happened many times.

The last car I bought was on E mail while I was working. It took little time and made for the most enjoyable deal I ever made.

I did not have any saleman banter. I knew what I wanted told him. He gave me a price and I countered. 10 min later I agreed to buy at the price I wanted.

Too often buying a car becomes an emotional thing and we do not alway think clear. Being away from the dealer I did not have the new car right their infront of me to distract me. I also controled the pace of the deal.

Once we struck the deal we just had to find a dealer to trade with to get mine. We did and I did shake a hand when it was done. It did not make me feel any different.

In the end the web and E mail is a smart way to shop and get a fair and good price on a vehicle. I also did this same thing to find my 04 GTP. It saved me $9,000 off sticker on a brand new car. I did have to drive 1.5 hours away but it was worth the savings.

We bought our STi by using Costco. They setup everything with the dealer and I knew the price when I walked in the door. This happened even though the local dealer didn't even have the car we wanted. He then got the car shipped in from another state and we signed the papers and drove away very happy.

but at least for now...... i get GM which is cheaper than buying through cosco...... or other....

but for me i also get ford A plan...... best of both worlds at least for now.

really dont need a salesman or any one other than when we have a trade in..

For Canada, I heard it was 300 closing out of 700 total. So that leaves 400. Anyone can verify that, or know the date of notification?

My dealer (Chevrolet Cadillac) learned yesterday that they will continue to be part of GM dealers network after october 2010. :nuts::D

However, the Saturn/Saab dealership, and the Pontiac Buick GMC dealership will have to close on 12/31/2009. :roll:

The Pontiac Buick GMC dealership had built a brand new facility....... last year.

A very sad day for GM here...

280 closing in Canada.:(

I am confused. I know that the car biz is really complicated accounting wise. But I am always hearing during negotiations that the dealer is paying the manufacturer, so, how does closing down dealers save the manufacturer ANY money? Have the salesmen all been "making things up" all these years?
To believe the salesmen, the manufacturer is paid for the inventory by the dealer, and then I pay for advertising and freight. Even the parts department has paid for inventory, much of it is mandatory.
So, how is GM saving anything by refusing to deal with their "customers", the dealerships? I just don't get it.
Evidently we have all been getting ripped off by the car manufacturers for a long time, because they are presenting one business model to us and another to the distributor.

I am confused. I know that the car biz is really complicated accounting wise. But I am always hearing during negotiations that the dealer is paying the manufacturer, so, how does closing down dealers save the manufacturer ANY money? Have the salesmen all been "making things up" all these years?
To believe the salesmen, the manufacturer is paid for the inventory by the dealer, and then I pay for advertising and freight. Even the parts department has paid for inventory, much of it is mandatory.
So, how is GM saving anything by refusing to deal with their "customers", the dealerships? I just don't get it.
Evidently we have all been getting ripped off by the car manufacturers for a long time, because they are presenting one business model to us and another to the distributor.

The answer is simple... GM is government owned, from now on... They'll do what they're told to do.

Confirmed on local news a couple of days ago ALL GM dealers in our county are safe (yay!)

I am confused. I know that the car biz is really complicated accounting wise. But I am always hearing during negotiations that the dealer is paying the manufacturer, so, how does closing down dealers save the manufacturer ANY money? Have the salesmen all been "making things up" all these years?
To believe the salesmen, the manufacturer is paid for the inventory by the dealer, and then I pay for advertising and freight. Even the parts department has paid for inventory, much of it is mandatory.
So, how is GM saving anything by refusing to deal with their "customers", the dealerships? I just don't get it.
Evidently we have all been getting ripped off by the car manufacturers for a long time, because they are presenting one business model to us and another to the distributor.

Currently, there is too much competition among dealers. If two Chevy dealers are in town, they are going to compete against each other for your business. This causes them to have to lower their prices to entice you into their dealership. If GM closes one of the two, then you only have one choice, so they don't have to negotiate quite as much therefore making more money.

Now, this doesn't account for the fact that then some people may end up just going to the Ford dealer in town because they didn't close, and they don't want to drive 20 miles to another dealer....:roll:

I am confused. I know that the car biz is really complicated accounting wise. But I am always hearing during negotiations that the dealer is paying the manufacturer, so, how does closing down dealers save the manufacturer ANY money? Have the salesmen all been "making things up" all these years?
To believe the salesmen, the manufacturer is paid for the inventory by the dealer, and then I pay for advertising and freight. Even the parts department has paid for inventory, much of it is mandatory.
So, how is GM saving anything by refusing to deal with their "customers", the dealerships? I just don't get it.
Evidently we have all been getting ripped off by the car manufacturers for a long time, because they are presenting one business model to us and another to the distributor.

GM can and will take the Car's/Trucks back and more then likely just move them to another dealer that will remain open.

GM has felt for years that dealer density in certain areas was too high.This is their way of culling out marginal (in their opinion)dealer locations,boosting per location sales and profits,and,yes,lessening competition.Now,with an impending GM bankruptcy,I'm thinking no dealer is safe.I'm betting that GM will use the bankruptcy to eliminate even more dealers.I hope I'm wrong.

Soooo, now that the dealerships are being closed, does anyone know how many/which plants are being closed???
I recently (three weeks ago) ordered a panel, but the sales rep couldn't tell me when to expect delivery. He actually told me, "Don't hold yer breath". If it goes any longer, I'll probably be paying 2010 price for the thing.:(:cry:
How many of you out there ordered a unit, and what was the wait time 'til actual delivery?
Mo

Soooo, now that the dealerships are being closed, does anyone know how many/which plants are being closed???
I recently (three weeks ago) ordered a panel, but the sales rep couldn't tell me when to expect delivery. He actually told me, "Don't hold yer breath". If it goes any longer, I'll probably be paying 2010 price for the thing.:(:cry:
How many of you out there ordered a unit, and what was the wait time 'til actual delivery?
Mo

Don't count on it. This is my Take on the hole GM, June 1st Deadline. Beside's GM closing Dealer's, there also in talks to Sell portions of Opel to Fiat. They will then turn around and file bankruptcy.

Once they have filed, Hummer, Saturn, and Pontiac will be done.The good Model's I.e. Saturn Astra will be going to Buick. They can also push up the list of dealer's closing. If done right they will be back up and running by Sept or sooner. Thus a leaner GM.

Thanks, VS.
I'll ask again:
"How many of you out there ordered a unit, and what was the wait time 'til actual delivery?"
Mo

Here is part of list i pulled from GMIN. These dealer's have already received notice they will be closing.

Also according to GMIN they WILL be filing bankruptcy no doubt about it. We will then see the "GoodGM"Chevy,GMC,Buick. "BadGM" Pontiac,Saturn,Hummer.

Here is a list of Dealer's that have received notice they will be closing.

GM Dealer Closing List (Letter Received):
Classic Pontiac Cadillac GMC Anniston AL
Norman Blackmon Motors Greenville AL
Abercrombie Chevrolet Hartselle AL
Susan Schein Chevrolet Pelham AL
Colonial Chevrolet Buick Talladega AL
Keeton Motor Buick Pontiac GMC Fordyce AR
Guatney Pontiac Buick GMC Little Rock AR
Firebaugh Chevrolet Firebaugh CA
Tri Pontiac Buick Hemet CA
Don Signer Buick-Cadillac Newark CA
Mazzei's GMC Pittsburgh CA
Hatfield Buick GMC Redlands CA
Seaside Buick Ponitac GMC San Diego CA
Daniels Chevyland Colorado Springs CO
Tri-County GM Lajunta CO
Hajek Chevrolet Longmount CO
Wile Motors Columbia CT
Jim Douglas Chevrolet High Springs FL
Coggin Chevrolet Kissimmee FL
Coggin Pontiac Buick GMC Kissimmee FL
Lehman Pontiac Buick GMC Miami FL
Pines Pontiac Buick GMC Pembroke Pines FL
Pat Fischer Chevrolet Titusville FL
Moore Pontiac Buick GMC Canton GA
Chuck Clancy Auto Group Chevrolet Cartersville GA
Frank Andrews Chevrolet Dublin GA
Phil Cook Motors (GMC) Madison GA
Stokes Hodges Chevrolet Buick Pontiac GMC Thomson GA
Windward Chevrolet Kaneohe HI
Larry Miller Pontiac Buick GMC Caldwell ID
R.L. Reising Sales Beecher IL
Wagoner Buick Pontiac GMC Inc. Belleville IL
Wolf Chevrolet Belvidere IL
Bruckerts Chevrolet Bethalto IL
Rust Chevrolet Cissna Park IL
D'Andrea Buick Pontiac GMC Chicago IL
Roseland Pontiac Chicago IL
Reichert Chevrolet Buick Pontiac Crystal Lake IL
Tom Sparks DeKalb IL
Heaton Chevrolet Pittsfield IL
Zimmerman Bros. Pontiac GMC Buick Pittsfield IL
Ken Nelson Auto Mall (GMC/Cadillac lines terminated) Sterling IL
Reichert Chevrolet Buick Pontiac Woodstock IL
Gene Reeg Motor Sales Columbia City IN
Bob Wysong Chevrolet Pontiac Cormwell IN
Don Ayres Pontiac GMC Fort Wayne IN
Mendenhall-Roy Chevrolet Inc. Grabill IN
Preferred Chevrolet Pontiac LaGrange IN
Meyer GMC Trucks Inc. North Manchester IN
Charlie Roberts Chevrolet Buick Rensselaer IN
Hubler Chevrolet Shelbyville IN
Olesen Chevrolet Avoca IA
Don's Chevrolet Ida Grove IA
Nuebel Chevrolet LeMars IA
Condon Auto Sales Sioux City IA
Hoak Motors Sioux City IA
Krueger Auto & Truck Villa Waverly IA
Crown Automotive Lawrence KS
Warta Buick Salina KS
Merle Snider Motors Chevrolet Buick Pontiac Cadillac Winfield KS
Mountain City Chevrolet Inez KY
Springhurst Chevrolet Louisville KY
Epp's Chevrolet Middleboro KY
Alex Montgomery Chevrolet Mount Washington KY
Ricky Smith GMC Weymouth MA
Fox Pontiac Buick GMC Alpine Township MI
Fox Motors Charlevoix MI
Holiday Chevrolet Farmington Hills MI
Courtesy Chevrolet Ontonagon MI
Victor George Chevrolet Lapeer MI
Walser Buick Pontiac GMC Bloomington MN
Swenson Motor Company (GMC) Benson/Willmar MN
Adams Chevrolet Belton MO
Royal Automotive Fulton MO
Riley Cadillac Jefferson City MO
Pete Paris Chevrolet Monroe City MO
Courtesy Chevrolet Buick Booneville MS
Scarff Auto Center (Pontiac GMC Buick) Kalispell MT
Headwaters Pontiac GMC Buick Livingston MT
Headwaters Pontiac GMC Buick Three Folks MT
Offutt Motors (Chevrolet, Pontiac, Buick) Lisbon ND
Paul Spady Buick Hastings NE
St. Paul Equipment GMC St. Paul NE
Autoserv of Laconia Buick Pontiac GMC Belmont NH
Poulin Auto Country Chevrolet Rochester NH
Quality Motor Co. Las Vegas NM
Miler Chevrolet Lordsburg NM
Scott Nichols Motors Silver City NM
Friday Motors Taos NM
Salisbury Chevrolet Glenville NY
Rose Buick Pontiac GMC Gloversville NY
Patire Chevrolet Buick Hoosick Falls NY
Rea Buick Port Jarvis NY
Matthews Chevrolet Brilliant OH
Dallas Automotive Group Jackson OH
Bigelow Chevrolet Parma OH
Eisenhour Motor Sales Chevrolet Pemberville OH
Moomaw Chevrolet Sugarcreek OH
Brown Pontiac Sylvania Township OH
Bill Cross of Performance Auto Group Woster OH
City Chevrolet Oklahoma City OK
Brackeen Motors Buick Pontiac GMC Shawnee OK
Bob Thomas Chevrolet Cadillac Bend OR
Randy Jones Chevrolet Corvallis OR
Dave Hamilton Chevrolet Redmond OR
JL Freed Pontiac Cadillac Lansdale PA
Videon Chevrolet Newton Square PA
Walker Chevrolet Sandy Lake PA
Williams Auto Group Sayre PA
Hasay Chevrolet Shickshinny PA
Henna Chevrolet Cadillac Aiken SC
Raceway Chevrolet Pontiac Buick GMC Lake City SC
Johnson Motor Company Buick Pontiac GMC Graniteville SC
Nourse Interstate Automall Chevrolet Buick Pontiac Richburg SC
Olsen Implement GMC Huron SD
Yankton Motors Yankton SD
LaRoche Pontiac Buick GMC Brenham TX
Forrest Chevrolet Cadillac Buick Pontiac GMC Cleburne TX
Don Helms Chevrolet Graham TX
Red McCombs Superior Pontiac GMC San Antonio TX
Carlisle Chevrolet Cadillac Waxahachie TX
Team Chevrolet Smyrna TN
Painter Chevrolet Pontiac Nephi UT
Barber Brothers Chevrolet Spanish Fork UT
Boyd Chevrolet South Hill VA
Brighton Garage Chevrolet Island Pond VT
Wells River Chevrolet Wells River VT
Lewis River Motor Co. Chevrolet Woodland WA
Bob Hall GMC Yakima WA
Glen Dale Chevrolet Glen Dale WV
Midway Motors Harman WV
Joe Romeo's Kingwood WV
American Chevrolet Mannington WV
Bell Chevrolet Sistersville WV
Spencer Auto Group Spencer WV
Johnson Sales Chevrolet Arlington WI
Tom's Chevrolet Cornell WI
Ernie Von Schledorn Chevrolet Pontiac Cadillac Mayville WI
Handel Motors Medford WI
M&H Chevrolet Medford WI
Broadway GM Pittsfield WI

Must be a lot more on another list sonewhere since no dealers in my town are on the list and I'm sure there will be at least 2 of them closed.

Must be a lot more on another list sonewhere since no dealers in my town are on the list and I'm sure there will be at least 2 of them closed.

Those are only the dealers that have announced it... There was only one in my area that announced...I'm sure there are more but they just haven't because no one has told them they need to.

Must be a lot more on another list somewhere since no dealers in my town are on the list and I'm sure there will be at least 2 of them closed.

2 Problems here. 1st There is no official list. The list above is being created based on media reports and we know they are never wrong. 2nd most dealers are not telling the media and their employees because some will fight the termination and others don't want their employees bolting on them.

The problem for the employees of the named dealers above is if they want to quit and go to another GM dealer, they won't know if the dealer they are going to might also be on the list, but just not saying.

Hopefully next week with bankruptcy the judge will make them publish the list and then dealer employees can quit stressing out on this.

2 Problems here. 1st There is no official list. The list above is being created based on media reports and we know they are never wrong. 2nd most dealers are not telling the media and their employees because some will fight the termination and others don't want their employees bolting on them.

The problem for the employees of the named dealers above is if they want to quit and go to another GM dealer, they won't know if the dealer they are going to might also be on the list, but just not saying.

Hopefully next week with bankruptcy the judge will make them publish the list and then dealer employees can quit stressing out on this.

At least we know you're safe Brad!!!:thumb:

At least we know you're safe Brad!!!:thumb:

what if and this is the IF gm bankrupts then what happens...

2 Problems here. 1st There is no official list. The list above is being created based on media reports and we know they are never wrong. 2nd most dealers are not telling the media and their employees because some will fight the termination and others don't want their employees bolting on them.

The problem for the employees of the named dealers above is if they want to quit and go to another GM dealer, they won't know if the dealer they are going to might also be on the list, but just not saying.

Hopefully next week with bankruptcy the judge will make them publish the list and then dealer employees can quit stressing out on this.

Correct, This is also why not all 1,100 dealer's are listed. These are dealer's that have made it public as far as i know.

what if and this is the IF gm bankrupts then what happens...

GM will be filing bankruptcy First part of June. They will more then likely follow the "Good Gm", "Bad Gm". Chevy,Buick,GMC will stay, Hummer,Saturn and Pontiac will be gone.

Actually according to reports the All New Astra (Opel) will be in Buick's lineup, instead of the current Astra being under Saturn.

We will wait and see, However it's looking more likely each day.

I'm wondering if my car is like a demon dealership closing car or something...

I know mine was bought new at Prestige Chevrolet in Flushing, MI.... That dealership was bought out and closed a year or so ago.

I bought it used at Zehnder Chevrolet in Frankenmuth, MI.... which no longer has cars on their lot and looks like they're about to close.


Anyone have any dealers they don't care for? Maybe I could trade my HHR in...:nuts:

GM's Henderson, under pressure, will release list of closed stores

Neil Roland
Automotive News
June 3, 2009 - 9:14 am ET
UPDATED: 6/3/09 6:14 p.m. ET


WASHINGTON -- General Motors CEO Fritz Henderson reluctantly agreed Wednesday to comply with a senator's request to turn over the bankrupt automaker's list of dealerships to be eliminated.



Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va, asked Henderson to supply the list, as well as analysis of cost savings that would result from closing the stores. Henderson protested that GM is not making the names public because discontinued dealers don't want to be identified.

"We're giving them a 12-to-15-month window to decide what to do with their business," he said.

But in the end, he answered, "Yes, sir," when asked by Rockefeller to provide the information.

Chrysler President Jim Press also agreed to comply with the request. The identity of Chrysler's 789 dealerships targeted for closing was made public in a Bankruptcy Court filing three weeks ago.

The exchange came after the executives said their companies will save billions of dollars by eliminating a combined total of 3,400 dealerships over the next two years.

The number of GM units sold per dealer will nearly double by 2010 and provide a greater return on investment than they now offer, Henderson told the committee.

"The end result will be between 3,800 and 3,500 U.S. GM dealers by the end of 2010, depending on attrition levels, with a retail market share of 17.3 percent in a retail sales market of just over 10 million," Henderson said.

GM pays about $1,000 a vehicle for dealer and salesperson incentives, advertising, field sales, service and training, and information technology support, he said.

Limited appeals

Henderson and Press said they plan to consider appeals from dealers. They also pledged to improve communications and to buy shuttered dealers' inventory at fair prices for resale to surviving dealers.

But in the end, both Henderson and Press acknowledged that they are not going to change plans to eliminate at least 95 percent of the dealers already targeted.

Dealer consolidation will enable GM to improve its brand image and increase sales opportunities for high-performing stores, while attracting more private capital, Henderson said.

"This is our last chance to get it right -- to fix permanently those parts of the business that have diverted us from consistently building winning cars and trucks and the consumer experience to match," he said in prepared remarks.

The executives' testimony was delivered at a hearing convened to "address the insufficient transition period" for discontinued dealers, said Commerce Committee Chairman Jay Rockefeller, D-W.Va.

"Local auto dealers did not lead GM and Chrysler into financial ruin -- and any suggestion otherwise seems quite absurd," Rockefeller said in a prepared statement. "We also know that Chrysler gave its dealers less than one month's notice prior to termination -- which is truly unbelievable."

Press said Chrysler notified its 789 discontinued dealers on May 14 that they would be terminated on June 9.

"That termination date is needed to ensure that our new dealership structure will be firmly in place at or about the time the new company is formed with Fiat -- something understandably important to Fiat," he said.

Chrysler's alliance with Fiat has to be completed by June 15 under financial commitments made by the U.S. and Canadian governments, Press said.

Chrysler has already sold or redistributed 89 percent of all vehicles in discontinued dealer inventory, he said.

Press said the discontinued Chrysler dealers as a whole sold only 73 percent of their minimum sales responsibility, costing the company $1.5 billion in lost revenue.

These dealers lost an average of $73,000 last year, more than 20 times as much as the average Chrysler dealer, he said.

While they account for 25 percent of the less than 3,200 dealerships, they represent only 14 percent of sales volume, he said.

NADA's rebuttal

The leader of a dealer group disputed the executives' contention that eliminating stores would save or make money for the car companies.

"We don't understand how these drastic dealer reductions will increase the viability of GM and Chrysler," said John McEleney, chairman of the National Automobile Dealers Association.

He cited a study for NADA by the Casesa Shapiro Group in New York that said, "Far from being a burden to the manufacturer it represents, the automobile dealer supports the manufacturer's efforts by providing a vast distribution channel that allows for efficient flow of the manufacturer's product to the public at virtually no cost to the manufacturer."

In a separate statement, McEleney said GM delivered a 24-page "participation letter" to its surviving dealers yesterday asking them to sign "a one-sided, open-ended operating agreement."

"If I sign it, I will be committing my business to spend hundreds of thousands of dollars that I know about today, and committing to millions of dollars of potential financial obligations in the future, he said.

GM spokeswoman Susan Garontakos said the letter was sent to urge some surviving dealers to move to a different location, others to drop underperforming brands, and still others to consolidate with a nearby dealer.

"This was a very thorough, very thoughtful process" she said. "Each dealer was looked at individually."

The company won't release a copy of this letter, Garontakos said, citing its confidentiality.

On Tuesday, Automotive News reported most dealerships are being offered between $100,000 to $1 million to shut down over that period.

The U.S. government will own 60 percent of GM and 10 percent of Chrysler once their restructurings are complete. Both will be privately held for the foreseeable future.

Additional help for dealers beyond government money intended to help them finance floorplans is not out of the question, according to U.S. Sen. Carl Levin, D-Mich.

"There may be a remedy that has not been considered yet," Levin told reporters.

But Levin said a legislative solution was unlikely.

Date: June 4, 2009, 9:40 AM

To: All General Motors Dealers

Subject: GM Dealer Network Restructuring Wind Down Review Process


GM has developed a process to provide dealers that received a wind-down agreement the opportunity to submit a request for review. For those dealers that received a letter dated May 14th 2009, your time period for submitting a review has expired.


Only electronic submissions to GMDEALERNETWORKQUESTIONS@GM.COM from the Dealer Operator named in Paragraph 3 of the Dealer Sales and Service Agreement will be accepted, and must include BAC, Dealer Company Name, address, City & State and received on or before June 8th 5:00PM ET.


Requests for Wind Down Reviews must be received on or before June 8, 2009 to facilitate an appropriate review through June 12th, at which time the process closes. We will notify you of our decision. If the decision is reversed, you will receive a new agreement with revised timing requirements.


THE SUBMISSION DEADLINES OF YOUR CURRENT AGREEMENTS HAVE NOT CHANGED. YOUR AGREEMENTS MUST BE RETURNED BY JUNE 12, 2009 OR WE WILL PETITION THE COURT TO REJECT YOUR SALES AND SERVICE AGREEMENT.

We got the bad news today.The owner got the letter that we're done as a Buick dealer no later than 2-1-2010,maybe earlier.So for me it's probably going to be the end of the line in the car biz after a total of about 35 1/2 years.I'm contemplating going back to school and getting an associate's degree to learn how to fix medical equipment.My biggest concern is will someone hire a 57 year old rookie?

June 8, 2009: GM Media Statement attributed to Mark LaNeve, GM North America Vice President, Vehicles Sales, Service & Marketing regarding

GM's ongoing discussions with NADA on Dealer Participation and Wind-Down Agreements:


"The consolidation of GM's dealer network nationwide is a very difficult, but necessary part of GM's overall reinvention efforts. During testimony last week before the Senate Commerce Committee on this topic, the National Automobile Dealers Association (NADA) expressed concern over some specifics in GM's Participation Agreements for our dealers. In his corresponding testimony, GM President & CEO Fritz Henderson committed that GM would meet with the NADA and come to an understanding over these concerns. We are happy to report that after meetings last Friday and Saturday with both NADA and GM’s National Dealer Council (NDC) leadership, we now have a better collective understanding of the issues. As a result, GM will be sending our dealers a letter clarifying various subjects in the Participation Agreement, most notably dualing with competitive makes and performance standards.

"To date, we are very pleased with the overall dealer response to the proposed agreements. Nearly 90 percent of GM dealers have signed or verbally agreed to the participation agreements, while almost 75 percent have done so with the wind-down agreements. In both cases, we expect to have at least 95 percent of the signed documents on hand ahead of our Friday, June 12 deadline.

“While these efforts are extremely difficult for all involved, we believe that the GM dealers moving forward with the company strongly support actions to improve their long-term competitiveness and business opportunities.


"We value the input and relationship with all of our dealers and their hard-working representatives from NADA and the NDC. We will continue to evaluate all GM dealers against a common set of performance standards to ensure that our selection process is fair and robust. It is important to remember that despite the difficulty of these circumstances, the majority of GM dealers support and recognize the necessity of these changes to our dealer network.”

well, my 2 cents:
GM is using the tax payers $$$ to buy out certain dealers; i.e.
Manly GMC in Santa Rosa, Ca, where I purchased my 06 HHR used, was "paid off, and bought off" by GM to "end their franchise relationship". In otherwords, GM is using the bail-out money to buy out dealers, and close them up.

this is straight from the owner of said dealership.

This particular dealership was actually doing well in both new vehicle sales, service, and parts(retail and wholesale)

Yea local Chevy dealership here for over 40+ yrs, got the cut second time around..
They can't get any more vehicles & close after Christmas..

Now only local is the GMC dealership, & little further away are 2 chevy dealers..

Kinda sux..

So for me it's probably going to be the end of the line in the car biz after a total of about 35 1/2 years.I'm contemplating going back to school and getting an associate's degree to learn how to fix medical equipment.My biggest concern is will someone hire a 57 year old rookie?
Excellent idea. If you can do the job, age is irellevant for most employers despite news reports otherwise. One very important key is being ok with moving (that is where many "older folks" hurt their chances by seeming inflexible). Also be aware that there are currently substantial gov't subsidies for continuing your health insurance through Cobra if you are laid off (doesn't apply if you "quit").

I still don't get it. We had an honest Cadillac/Chevrolet dealer around here that closed down. It was about 20 miles from my house, but I gave them every bit of my business.

We have a local one in my town only 3 miles away that's a known shyster, but that one's still kicking. I ended up buying a car from them yesterday because the good ones closed up. They lied, cheated and were sleazy, but at least they didn't get me for that much. It's all we can do. I hate to go back and hope I never have to. The old way of selling cars is back again (the customer is the enemy).

If you want to see if your local dealer will be closing next year here is a link to do just that. Use the SALES search and the zip code. If the dealer doesn't pull up on the locator, they are on the wind down list. If they are still open you can do the same search under SERVICE and they will show up on the locator.

http://www.gm.com/dealer-availability/?brandId=gc&src=div_oth&evar24=gm_com_dealer_locator#

Thanks ChvyMgr, I've been waiting for that info - the two closest dealers are gone.

By the way if you have any input to that web site, the FAQ section did not work for me.

Looks as if both our Chevy/Cadillac dealer and our Buick/GMC dealer will be around :thumb: Thanks for the link :bow:

By the way if you have any input to that web site, the FAQ section did not work for me.

I am getting the same thing. I see the questions but can't get the plus button to work to see the answers. When I was at work I was able to view the answers. It's just a bunch of blah blah blah, yada yada yada. They restate that they will not be telling the public which dealers are closing. And that if your dealer closes just go to another one. :roll:

I have a feeling this site won't last long, once they figure out what the public is finding out. But I did check the dealers that I know got the letter and they were not on the locator.

What was sad is this Service Forum that I got the link from has techs checking their dealers and finding out that they will be closing. One tech even challenged the owner on his finding and the owner finally stated that they would be closing. There are a lot of people who's jobs are in jeopardy out there and they don't even know it.

There's one delear near me (Chevy only), and their lot has been dwindling down.
The only new inventory they seem to have left are are several Corvettes and some larger trucks. Everything else is used and that isn't much.

I used to go to them, until I realized a few years ago that they were charging me more than retail on parts.

The next closest dealer, I've been a satisfied customer for service and parts, and they are on the sales search, so I'm glad to see they will still be around.

Well, it can't be 100% up to date... Joseph Chevrolet in Millington, MI just went out of business from personal financial reasons, and he's still on there!

But I'm glad he closed... That was a place you couldn't trust.

By the way if you have any input to that web site, the FAQ section did not work for me.

Q: Why is my dealer closing?
A: Becoming a more competitive company requires us to restructure all facets of GM's business, manufacturing footprint, employment levels, number of brands and salaried and retiree cost. The restructuring of our dealer network is part of the overall effort to make GM a more competitive company. If your dealership is closing as a result of this restructuring, you can locate a new dealer by simply entering your information in the dealer locator above. Rest assured, GM Dealers are staffed by GM-trained Goodwrench experts using Genuine GM Parts. Trust them to be best equipped to service and maintain your vehicle for years to come.

Q: How will I be impacted now that my dealer is closed?
A: We want there to be no impact on our customers. We've been working closely with our continuing dealers, as well as those who will phase out operations over time, to ensure a smooth transition. Your new GM vehicle can be serviced at any other same line-make dealer for routine warranty service and any GM Dealer for emergency situations.

Q: Can I find out exactly which GM dealerships will be closed?
A: GM is not publishing a list of the GM dealerships whose Sales and Service Agreements will not be renewed out of respect for the confidentiality of that dealership's information. If you have questions, simply contact your dealership.

Q: How will I be impacted if I currently own a HUMMER, Saab, Saturn or Pontiac?
A: GM has entered into a Memo of Understanding (MOU) with buyers for all three brands, and we hope these brands will continue to operate under new ownership. We will advise all customers as soon as those plans are finalized but those brand’s dealers are in operation today and GM fully backs the warranty on all such vehicles.

I tried using the SALES button with Zip Code and it showed all kinds of dealerships in my area, and several of them should have gone out of business years ago. For instance, one dealer in a tiny town probably sells a dozen cars a year. He's still showing up. I'm wondering if this is accurate....

I'm wondering if this is accurate....

The biggest tell tale sign is if dealer has 2010 vehicles on their lot. If they are on the wind down list you are not being shipped any stock inventory.

If you got the threatening letter, which states "get better at what you do or else", you are able to order 2010 models but need to get your act together or you will end up on the bad list.

Same type thing happened to Harley Dealerships a while back..

HD International demanded that all Dealerships must meet strict new "boutique" type appearances & standards, or no new Bikes for next Model Year..

Many complied, many folded.. ( I miss the Old shops that you could shoot the BS, & even wrench on yer bike in the lot, if needed) ..

Found on GM inside news. Complete list of Cadillac and Chevrolet dealers that received the wind down letter.

http://images.thetruthaboutcars.com/2009/10/Caddy-Chevy-Letters.pdf?AID=10546635&PID=3193616

At least one local dealer shows on the wind-down list but has 2010 models in stock. How'd that happen?

Looks as if both our Chevy/Cadillac dealer and our Buick/GMC dealer will be around :thumb: Thanks for the link :bow:

Found on GM inside news. Complete list of Cadillac and Chevrolet dealers that received the wind down letter.

http://images.thetruthaboutcars.com/2009/10/Caddy-Chevy-Letters.pdf?AID=10546635&PID=3193616

Okay, now I'm confused. According to this second link our Chevy/Cadillac dealer is on the wind down list :confused: So since they received a Caddy letter does this mean they will no longer be able to sell Cadillacs but can continue to sell Chevys?!?

Totals for the list: 895 Caddy Letters and 650 Chevy Letters

Can this possibly be right??? In our area, the strongest dealer is listed along with a couple big names as well. I guess as I re-read this a dealer may lose his Caddy dealership but keep his Chevy badge. What about the Buick and GMC side - more to follow? In our area all of the dealerships lost their Caddy dealership. No one left to sell them?

Yet, a couple of our our weakest dealers, one of whom has no new inventory on their lot is not on it. I'm a bit confused. Again, another letter to follow about Buick/GMC?

So since they received a Caddy letter does this mean they will no longer be able to sell Cadillacs but can continue to sell Chevys?!?

Totals for the list: 895 Caddy Letters and 650 Chevy Letters

Yes.

Can this possibly be right???

I couldn't tell you what the odds are on that. It was stated that it was leaked to that site and I found it on another forum. It's the internet, so the only thing for positive that we know is, "that only time will tell us" if that list is legit and correct.

At least one local dealer shows on the wind-down list but has 2010 models in stock. How'd that happen?

Remember some dealers appealed to GM and got off the wind down list.

I always thought that someone at GM would leak the list and maybe I was right. But I believe that Oswald killed Kennedy on his own, Americans went to the moon and returned and the 911 attacks were not engineered by our government. So what do I know?

II believe that Oswald killed Kennedy on his own, Americans went to the moon and returned and the 911 attacks were not engineered by our government. So what do I know?

And I agree with you on two of those three points:smile:. So is there a Buick/GMC list anyone's found?

GM, Chrysler agree to reconsider dealer closings

By STEPHEN MANNING and KEN THOMAS
Associated Press Writers

Latest News
GM, Chrysler agree to reconsider dealer closings

WASHINGTON (AP) -- General Motors and Chrysler will reconsider decisions to close thousands of dealerships as part of a compromise meant to stave off federal legislation that would require them to keep showrooms open.

The decision by the two automakers, announced Thursday, raises the prospect of new life for some of the more than 3,000 dealerships that were slated to close as part of a broad industry restructuring. Dealers have loudly protested the decisions, saying they are unfair.


http://hosted.ap.org/dynamic/stories/U/US_GM_DEALERS?SITE=TXDAM&SECTION=HOME&TEMPLATE=DEFAULT

GM, Chrysler agree to reconsider dealer closings

By STEPHEN MANNING and KEN THOMAS
Associated Press Writers

Latest News
GM, Chrysler agree to reconsider dealer closings

WASHINGTON (AP) -- General Motors and Chrysler will reconsider decisions to close thousands of dealerships as part of a compromise meant to stave off federal legislation that would require them to keep showrooms open.

The decision by the two automakers, announced Thursday, raises the prospect of new life for some of the more than 3,000 dealerships that were slated to close as part of a broad industry restructuring. Dealers have loudly protested the decisions, saying they are unfair.


http://hosted.ap.org/dynamic/stories/U/US_GM_DEALERS?SITE=TXDAM&SECTION=HOME&TEMPLATE=DEFAULT

Boy, I hope this is true & my local Chevrolet Dealer remains open, they have been a Chevrolet Dealer for 60+ years... Place is a landmark..

The owner, Mr. Hall now only has his mint 1937 Chevy Coupe in the showroom., bought new by his father.

The two dealers here getting the axe are both old dealers that were told to build new buildings near a freeway several years ago. Neither did for Chevy but they spent millions on large super dealers for the likes of Hyundia and Dodge.

They both had no excuse to be able to relocate if they were selling as many Chevy cars as they claim.

I am just mad the one small dealer near by should be shut down for their practices. They are the king of false advertising and sell very few cars.

While it is good for me we have a lot of Chevy dealers here. But the truth is we have more than we need. I wish no ill will to any but I have 6+ Chevy dealers to one Toyota in a city of 250,000. that is not counting the burbs.

Only thing I see with them closing the dealers, is now they can do what they want as far as practices go. I mean, if you don't like them, so what? It's not like there's another dealer down the street anymore.

There are plenty of dealers I would go to before some, so what happens when all of the dealers I like close? I don't think this is a good thing.

Supposedly the CSI figures weighed into the decisions.That didn't help us out though.Ours was fine but the dealer up the street that got our Buick franchise has a CSI that's in the dumper.They were at one time the largest volume Pontiac dealer in the world but all they cared about was selling cars,not servicing them.I've heard many stories about bad service experiences there.

Supposedly the CSI figures weighed into the decisions.That didn't help us out though.Ours was fine but the dealer up the street that got our Buick franchise has a CSI that's in the dumper.They were at one time the largest volume Pontiac dealer in the world but all they cared about was selling cars,not servicing them.I've heard many stories about bad service experiences there.

And that's what scares me....:roll:

In the area where I live, there were two GM dealers in fierce competition. Now, the one that I dealt with is closed and changed to VW.
The remaining dealer has adopted a take-it-or-leave-it attitude and has increased their parts prices. For example, the 3 parts for the steering wheel radio controls were about C$110 from my original dealer; now C$204 from the remaining dealer.
So, I ordered them from GMPartsHouse.com for US$64.66 plus $20 UPS!

Isn't restriction of competition (GM's stated reason for reducing the number of dealers) against the law?