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Which GM dealerships are closing?

May 15, 2009

General Motors said it will drop about 1,600 U.S. dealers as it struggles to slash billions of dollars in costs and debts. But our Detroit photographer Rebecca Cook reports that, unlike Chrysler, GM does not intend to release to the media a list of dealers hit by the closure plans. Chrysler disclosed in court documents on Thursday the identities of the 789 dealerships it wants to terminate under the bankruptcy process.

Affected GM dealers received letters by express mail on Friday morning informing them that the automaker did not see how it could have a “productive business relationship” after 2010.

GM is telling journalists to find out for themselves which dealerships are closing.  Our reporters around the country are working their sources and calling local dealers for information. Readers can help us. If you have any information on which dealerships face the ax, drop us a comment below or email tradingplaces at reuters.com.

Comments

I just found out they are closing my Dealership.

It’s shocking because I made money last year and am up money this year. My CSI is the highest in the area and I sell over 40 cars per month making me the thid largest dealership in the area (out of 16). There was no specific reason given for my termination and I was told that none would be given.

Because of reasons like this, I don’t think that GM will survive. This is what happens when you put non-car people in charge of a car company. They look solely at capitalization (which just isn’t that relevent)

Posted by Joe | Report as abusive
 

Here in Eastern North Carolina Reed Lalier Chevrolet in Fayetteville NC, Dorman Chevrolet in Roseboro NC and Warsaw Chevrolet in Warsaw NC are all three closing.

 

Joe and other readers, please give us location of dealerships that are closing. Thanks for sharing the information.

Richard Baum
Reuters.com

 

my boyfriend works as a gm tech at a dealer in illinois, 13 years. i am worried for his job. i just bought a 2009 chevy silverado crewcab, which i LOVE. the service was amazing, and the deal. how can gm make such a great product, and be in so much trouble? god help all the people who will lose their jobs over this.

Posted by april | Report as abusive
 

AGH… So sad! I worked for GMAC Mortgage for several years, and had significant relations with GM dealerships through the GM Family First Program… I left GMAC last June, it was clear what was coming, but even this is so hard to see! I had enjoyed the friendship and comraderie of many dealerships over the years, and am really sad to see so many good quality people losing their jobs… I can apprciate how difficult it can be to be a hardworking and successful person and have good busines, and yet the difficulties at upper levels and market wide still dictate that you need to move on… My prayers are out there for the employees, families and friends of those who are losing their jobs!

 

Just another example of the way GM has been obscuring facts . . . truly an American Icon . . . GM has taken great lessons from OUR federal government, lol.

Posted by George | Report as abusive
 

I own a jeep cherokee which I bought about 4 years ago. The dealer, which was recommended to me, gave me a very good deal. I even invited him to dinner which he declined of course saying at that time that he was prohibited taking any gifts from clients as it could be misinterpreted by Chrysler.I just read that his dealership, which has been in business since 1972, will be closed. In the town newspaper the owner dealer was crying not for him but for his 48 workers that will be out of a job very soon. What a shame! This does not look like the America I have known since I was born. The nightmare continues without an end insight. So many people suffering.

 

Our is closing, but since I never bought anything there nor do I ever plan to, I guess I will not miss them.

Posted by bhamborn | Report as abusive
 

In reference to a post made by Rick Stafford today.
We did not receive a letter from GM today informing us they would not renew our franchise in 2010. The post above about Eastern North Carolina terminations is not accurate with regard to our dealership.

 

Even if GM does survive, the way they are handling this has tarnished their image with Americans forever. I’m pretty sure I’ll never buy another GM product, what about you? Ford maybe?

Wow, did GM really tell journalists to “find out for themselves” which dealerships are being closed? That decision must have been made by some GM execujerk in a private jet flying somewhere over middle America (clearly afraid to land!).

We (the tax payer) bails GM out, and this is what we get for it?

Posted by Shane | Report as abusive
 

To a layman, this must be the main reason for whats going on in GM (delegating due persoanl diligence to others who are irrelevant)

Where I live, the motor insurers also practicing the same traditional custom

 

This GM practice of delegating due personal diligence to third parties makes me hold back trading-in my existing non-GM car for a Chervolet Spark (GM product)

I feel sorry for the local Authorised Distributor/Dealers trying to book me for a test-drive

 

Those who got the ax should unite and import cheap chinese cars

Posted by antonio garcia | Report as abusive
 

We are now getting the full effect of Reganomics and deregulation. Good money poured over bad deals and “More Bankruptcies Assured” candaidates running businesses they had no clue about what it takes to make a buck. Only, how to rape, pillage, and burn the average shareholder and employees, then run to Texas with their millions.

By the way the guy who won’t miss GM because he doesn’t drive one…Well, wait until your taxes go up and your wages go down becouse the UAW/GM is not around to help hold wages up and pay taxes.

Plus, importing cheap slave labor car parts from 3rd. world is what started this mess.

 

Closing dealerships is absolute insanity by this brain dead federal government. What do dealers cost GM or Chrysler? Close to nothing. They are independent franchises, independently financed, and the only channel to sell cars. No dealers equals no sales. What is really killing GM and Chrysler are the inflated pension plans extorted from the manufacturers over the years. Flush the phoney pensions and we have viable companies immediately, and healthy dealers. The UAW has killed jobs in every town that has a closed dealership. The UAW will also kill off GM and Chrysler in less than 2-3 regardless of how much of our tax the Big Government, and fat Bureaucrats give Big Unions. The little guy working hard and trying to get ahead, is being crushed again.

Posted by Imin Shok | Report as abusive
 

DEALERS COST GM NOTHING IN FACT THEIR SALES
ARE WHAT GIVE GM A INCOME OR POSITIVE CASH FLOW.
THE SOONER GM IS REORGANIZED, AND FRESH NEW MANAGEMENT IS ESTABLISH BY THE COURTS , THE SOONER THE PROBLEMS WILL BE SOLVED..

 

if the americam public dosent wise up soon, the goverment funded / mistress the unions{ both in bed!} will ruin any viable business that they can get their hands upon, not only the automotive,but any that threaten the existance of big goverment ,unions, we have done this to ourselves, the only cure will be to turn the next election around ,if its not too ! late by then, remember freebees for everybody cost somebody!! still feel like fronting the bill?

Posted by rebel | Report as abusive
 

Suprise suprise – Rick Hendrick loses no dealerships today – GM is full of it when they said what their criteria were for keeping a dealer open. As always it came down to the buddy system… two multimillion dollar operations closing in Raleigh NC area

Posted by Fred | Report as abusive
 

They’re going on the Toyota model. That is:
A. 1 Luxury brand, 1 mid-range brand, 1 low-cost brand; lose all the other brands and their look-alike SUVs, sedans, etc.

B. Far fewer dealerships in a metropolitan area. In the Twin Cities, we have just a handful of Toyota dealerships and seems like hundreds of GM dealerships.

The rationale is simple: forget sales volumes, get smaller and be profitable for a change.

Posted by Terry Elliott | Report as abusive
 

They have to close dealers as the network is over saturated. This shouldn’t have happened in the first place but i guess someone was asleep at the franchise wheel. Also the unions hold some responsibility for this. How can you expect to keep paying people who no longer produce. Why should a company that you worked for pay you after you leave. You are responsible for you welfare not someone else.

Posted by Edris | Report as abusive
 

Mr. Imon Skok says it’s the UAW’s that’s killing the auto industry well, I beg to differ. Some advocate taking away workers pay and benefits (the average auto worker in the US makes 27 dollars an hour). The pension and health care benefits negotiated by the union enables employees that give many years of dedicated service, (sometimes 30 years or more) the ability to live life when retired and not depend on social welfare programs to survive. When the management of Wall Street, the Insurance Industry, and some of the biggest banks in the US get unrestricted bail outs while the government plays hard ball with the auto industry smells of class warfare, not to mention the auto executives get multi million dollar pensions and parachutes all the while they blame the hourly auto worker for GM and Chrysler’s demise smells of hypocrisy. God Bless the UAW and other labor unions that help to protect those that cannot otherwise protect themselves against the executive abuse… Those that blame the middle class must be in fear of losing their own parachutes.

 

It’s unfortunate, and many people will suffer, but it’s the state of the world. I worked for Ford Aerospace long ago, and drove Fords because they were given with incentives. But they were terrible. The service was nothing short of a ripoff, and the quality was in the toilet. I’d love to buy American, but I can’t afford to throw good money after bad. U.S. automakers had an opportunity to fix their problems, but didn’t. So who’s to blame? Auto executives, but we can’t support failing businesses, so it’s too bad. I’m an engineer, and in a business that is being offshored, and also onshored as the U.S. continues to bring H1-B visa-holders to this country as cheap labor. It’s also unforunate, but where we are as a nation. The U.S. was once a powerhouse, but now it’s diminishing. I don’t think anything can be done to change that now. Is this really the change we voted for?

Posted by Tim | Report as abusive
 

Both GM and Chrysler could have been “saved” through means other than Federal takeover by a “Hope and Change” socialist that totally lied about what he and the Dems would do if elected. But, the ignorant and uneducated sheep that followed the “freebie” candidate and put him in office are now living with the results of their idiocy and gimme, gimme, gimme attitude. Hope you are enjoying the “back-end” job your getting now …. but wait – with a little luck, Congress will allocate billions more for some Vasoline to make it easier on you.

Posted by Ben Dover | Report as abusive
 

I truly feel that the UAW workers are being wrongfully blaimed for the car industry problems. Basily it’s the UAW and the Industry Management who are at fault. Hourly wage workers love to get raises, management love to show profits, so both of them have caused this problem. In 1967 I purchased a new vehicle for $2,600.00, I was earning $4.00 an hour at a union job. Today that like type vehicle cost $18,000.00, while my wages were only $8.00 an hour. My wages doubled, the price of the car went uup 400%. I paid union dues, but my monthly dues were so low that we were considered small change to the main union. We had union officials spend our local share of dues anyway they wanted, we complained, no help, evidentually the union was kick out.

 

No one seems to be crying in their beer when money is loose, too loose, and cars are being sold to ninnies who can’t afford them. Same for home ownership. Lenders were pigging out, in every industry. Now that there’s a business contraction, now that people who have no business buying cars they can’t afford and haven’t saved for, everyone is praying for the workers/dealers/managers who were gobbling up the cheap credit. GM, Ford and Chrysler didn’t seem to care how their cars were running; they made their money on financing. Until the dance ended. Now it’s “oh, woe is me!” Wake up, infants. You need to save money. Any moron knows how to spend it.

Posted by Howard Perry | Report as abusive
 

When the average wage for a highschool educated worker in one industry is significantly higher than the national avergage something is wrong with that picture. Glad to see it changing sorry to see it be such an abrupt transition for so many. As far as quality I have been happy with my Ford and GM vehicles. Chrysler on the other hand – better than in the past but still a way to go to win by my confidence. Chrysler prices also are to high and they don’t warrant the premium they are asking relative to the competition.

Posted by David | Report as abusive
 

Does anyone truly believe that the government bailing out the automakers and effectively becoming co-owner (at least financially speaking), will improve their business performance and efficiency and succeed in a competitive global marketplace? I suppose the idea of good exit strategies are also applicable to (or perhaps not) this conversation as well. It reminds me of a similar conversation happening around big banking’s future – here.
http://expattitude.blogspot.com/2009/05/ charlie-rose-joseph-stiglitz-on-future.h tml

 

Ifeel the consumers have a right to know which dealers are closing. (eg) What happens if you give your money to a dealer and they close you have to go to court to get it back and if they are out of business good luck.

Posted by al | Report as abusive
 

I am sorry to see more workers lose their jobs. There is something inherently wrong when some workers make $27 an hour and others cannot find a job that normally pays $25 an hour for $8-$10 an hour.

Posted by Patricia | Report as abusive
 

This is a bankruptcy solely orchestrated by Obama administration. You get a job from Obama not from GM, only if you make a “green” car Obama wants you to. Otherwise you are out of job, out of home and out of existence.

Posted by Arturo | Report as abusive
 

To everyone who voted for Obama & his so called “Vision for America” I say this : What a picture he’s painted, huh ? GM is an American Icon & he managed to kill it with less than a year in office. Watch yourselves, your job is next on the chopping block !!!

Posted by James Houser | Report as abusive
 

The way these dealers try to rape people on vehicles a lot more of them shpuld be closed down. You go to buy a GM from a dealer and he tells you no incentives are going to be given even though they are availiable, he chooses not to give them. I for one thought times were tough, GM filing bankruptcy, dealers losing dealerships, people losing jobs, people just plain starving. Really!!!! why don’t you try selling cars instead of letting them sit on your lot @ 10000 over msrp. that is ludacris!

Posted by james hawk | Report as abusive
 

The comment posted by James Hawk has to one of the most ignorant comments I have ever seen. What do you do for a living for you to disparage a mostly honorable profession? You can find the cost of a vehicle from several sources on the web. Dealers have to pass on any rebates to the customer. GM and other manufacturers routinely audit deals to verify compliance. Dealers have supported local clubs, sports teams and other civic groups for years. I hope dealers aren’t closing in your area but if those so-called “thieves” are, maybe you can do your civic duty and make up for the lost revenue to those organizations. Next time do your homework before you engage that brain and maybe supidity doesn’t flow out of your mouth.

Posted by Rob Lucas | Report as abusive
 

Who’s at fault for the American automobile industry collapsing to the point it needs to turn to the government for help! Well if you really look at the problem everyone is. The government is for allowing so many imports vehicles in to our country, with out considering the out come of what will happen to the American cars. The public for forgetting where they live, work, and play freely (in America), the automobile manufacture for not thinking about the American public. When they were building vehicles like they were toy model cars. Now we have a president that says he will save jobs and get the economy going to put people back to work. But the government forces the American manufactures to close car dealerships, down size the plants. Putting serve hundreds of thousands of people out of work that have survived off, The American automobile business. What did they do for the import vehicles sold in this country? They are forcing American car dealers to open more import dealerships. Pushing the American plant worker to find work for the import manufacture in this country. How does this help the American automobile business in this country? Where we employ and keep the tax payers money in this country. Instead of shipping it to Japan or Korea. The government took the American publics tax dollars to help out the American built vehicle companies, on the same hand forced Americans to help build sell and open more import dealerships in this country off our tax dollars. How have we helped the American economy by allowing the government to do this????? The government, the public, the manufacture needs to think about this country America and stop thinking about greed. Every import vehicle sold; bought and built in this country will keep bring down the American automobile industry. Which we all know that the down turn of the automobile industry affects the American economy.

Posted by ed | Report as abusive
 

For all those who got dropped back in 2009 by GM I would like to recommend an alternative automobile franchise that offers complete assistance and support for small auto franchise dealers.

Posted by Chuckx | Report as abusive
 

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