General Motor is attempting to cushion the blow of dealers losing their franchises as part of the automaker's bid to pare down its network. According to Automotive News, the bankrupt automaker is offering some dealerships between $100,000 to $1 million to assist in the "wind down" of their businesses. In the case of Pontiac-specific dealers, GM is offering between $10,000 and $200,000.
General Motors Canada has announced that it has begun notifying its dealer body that it will be culling its sales networks by some 42 percent. The massive cut means that GM's 709 dealers will be trimmed by around 245 stores. The cuts will come as the restructuring automaker will elect to not renew its sales and service contracts come October 2010.
Yesterday we wrote about GM's intent to shrink its 14,118-strong dealer network, with one idea to combine Pontiac, Buick, and GMC dealers into larger, more modern flagship outlets. Turns out that was only part of the plan: according to Automotive News, "General Motors is preparing to make public a plan to encourage the creation of superstores in major metro areas that would carry every GM brand."
Reuters is reporting that Ford will be shrinking its dealer base over the next three years in order to better align its distribution network with a market share that is smaller than it has been in the past. Dealers were told of the planned reduction at the dealer meeting in Las Vegas last month. The East Coast and California have the highest saturation of Ford dealerships and are likely to see the largest reduction in numbers. At the moment there are about 4,300 Ford dealerships operating in the