GM forcing more than 1,000 dealers to close

April 28, 2009 10:58:32 AM PDT
General Motors Corp. says it will force 1,000 to 1,200 underperforming dealerships to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets stronger. Dealers were told of the move in a video conference Tuesday.

In addition, the company expects to lose 500 Hummer and Saturn dealers when the brands close or are sold, and it expects 400 dealers to close voluntarily. Another 500 would be consolidated into other dealers.

A dealer who watched the conference told The Associated Press about the changes, and company spokeswoman Susan Garantakos confirmed the numbers.

The company announced Monday it plans to reduce dealerships by 42 percent from 2008 to 2010, cutting them from 6,246 to 3,605.

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