GM grants reprieve to 30 dealers, reviewing more

General Motors wants to shrink its dealer network by around 2,500 outlets and has sent closure notices to more than a thousand already. Still, the General has left a door open that allows affected dealers to appeal the decision and show proof of why they should not be cut from the herd.

By Jonathon Ramsey
Dealers Out The Door: GM announced in its April 27 viability plan that it would reduce its dealer network from 6,246 to 3,605 by 2010. Part of the plan was phasing out 1,100 underperforming dealerships by the end of this year. With Chapter 11 bankruptcy financing, however, the number of GM dealers being phased out by the end of this year has grown to 2,100. Most of the dealerships being phased out, however, are either underperforming or selling Hummer, Saab, Saturn or Pontiac vehicles only. (Photo by MARK RALSTON/AFP/Getty Images)
Dealers Out The Door: GM announced in its April 27 viability plan that it would reduce its dealer network from 6,246 to 3,605 by 2010. Part of the plan was phasing out 1,100 underperforming dealerships by the end of this year. With Chapter 11 bankruptcy financing, however, the number of GM dealers being phased out by the end of this year has grown to 2,100. Most of the dealerships being phased out, however, are either underperforming or selling Hummer, Saab, Saturn or Pontiac vehicles only. (Photo by MARK RALSTON/AFP/Getty Images)
Get Autoblog in your Google feed
Preferred SourceGoogle Discover

General Motors wants to shrink its dealer network by around 2,500 outlets and has sent closure notices to more than a thousand already. Still, the General has left a door open that allows affected dealers to appeal the decision and show proof of why they should not be cut from the herd.

According to reports, almost the entire affected body of dealers appealed, and 500 of those appeals are still pending. Thirty dealers have had their sentences overturned and will be allowed to stay open. It is good news for the dealers… and yet the math remains the math: strorefronts have got to go.

[Source: Automotive News, sub. req’d | Photo by MARK RALSTON/AFP/Getty]