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Which GM dealerships are closing?
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.
Bold move or socialism?
The ax has fallen on GM chief Rick Wagoner’s neck. With one swing, President Obama put an end to Wagoner’s reign at the helm of the struggling auto giant. GM had asked the government for another bailout amounting to a further $16 billion in loans. Instead, the Obama administration pledged only to fund GM’s operations for another 60 days while it develops a sweeping restructuring plan.
Obama’s team also took aim at Chrysler, pushing it toward a merger, and threatened bankruptcy for both Detroit giants.
What do you think? Is it about time the government took forceful action or do the moves smack of socialism? And why go after the automakers but leave the management at failing banks in place?
The so-called logic of the socialist comments defies belief. The company is not a person, it is a legal entity owned by thousands if not millions of people. If you think the company is making so-called outrageous profits then go buy some shares in it and you can share that profit. As for making a so-called decent living, you make FIVE times at the UAW what your job is REALLY worth in the open marketplace. From another perspective, your monopoly on an input cost, labor, is actually ripping off the company, and me the shareholder, as well as the consumer. Worse, the socialist imposition of seniority at the UAW prohibits hard working, smart employees from getting ahead — which goes completely against the core values of our society. As noted in another post — Wake up America!!
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Resident Ask... Expert
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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.