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1,100 GM dealerships told to prepare to close in 2010

Full story: Newsday

General Motors notified 1,100 of what it called underperforming dealers that it wanted them to phase out their operations by October of next year to reflect the company's declining market share and, it said, to ensure the viability of the 3,600 to 4,000 expected to remain.

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Robert Bethune

Ann Arbor, MI

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#1
May 15, 2009
 

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GM will still have several hundred more dealerships than Toyota in the US, while selling about the same number of cars in the US. That ought to tell us something about the effectiveness of this action. In short--they still don't get it.
jbee

Cynthiana, KY

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#2
May 15, 2009
 

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Because of the way it's being handled, without public disclosure of the list, a customer has no idea if he's dealing with a zombie dealer or not.

That is not good business.
john

AOL

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#3
May 16, 2009
 
keep buying foreign products till there is nothing left here in America
apache

Dyersburg, TN

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#4
May 16, 2009
 

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I agree with "John aol" but I really would not buy a product that I was not sure would be serviced.
Where I live I wanted to but a Jeep but since finding out the dealership was being closed I would not even think about it. Why? Because when I went into the dealership and asked if they were one of the ones closing I was told "NO" we are safe and Later found out not true,,,so the public is not being told the truth and that is going to hurt the dealerships that are taking over for the ones being closed.
The buying public has the right to know who is and who is not being closed and only in truth will the buying public trust any car dealers.
Mike

Rochester, NY

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#5
May 16, 2009
 

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wait a minute GM can't make money but the free market (whats left of it) had all these dealerships. so the problem is not sales its overhead. therefore until GM finds a way to cut costs it will be in trouble.

once again America loses. the obama admin accomplished one thing saving the UAW, but did nothing for the consumer nothing for the investor and nothing for the free market which is the American way.

the only option for GM was chapter 11-and thanks to obama admin the pig of big government has adopted a new piglet in the form of big business. this is just plain wrong bad and disgraceful.
nassau Tax Slaves

Goldsboro, NC

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#6
May 16, 2009
 

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jbee and apache you hit the nail on the head ,you would have to be crazy to buy from a store if you dont know there outcome.More GM screw up,watch what happens when they announce the bankrupty as far as I am concerned they all got that letter since there not saying
Fact

Raleigh, NC

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#7
May 16, 2009
 

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I had to replace a car which was totaled. I started to look last fall, after the auto manufacturers' started to hemmorage cash.
The big three started manufactuers' incentive programs to generate cash and get inventory off the books.
With artificial inflation in used car prices created by dealers leases a used car was a negative incentive.
Universally, I found that dealers were not honoring the manufacturer's price reduction programs.
Employee pricing was a fiction. The dealers were demanding MSRP plus or minus a few hundred bucks.
Manufacturer provided free accessories were written into contracts by the dealers: " you have to pay something for it."
When I got the real price paid by the dealer for vehicles and got the sales manager to justify the bloated price demanded, I got estimates including: " debt service for inventory for six months, inventory restocking fees.
I was willing to pay the nationally published plus, Too much according to Consumer Union. I was laughed at.
Having gone through organization buying services, I was quoted MSRP or bait and switch, 2007 demos instead of the current model year.
I have NO SYMPATHY for the Gavone dealerships. They wanted to make-up for decreased volume with higher profits.
They are not in partnership with the manufacturers which are fighting for survival. Like a cancer, they have fed upon the host, killing it from within.
This is a good outcome, the cancer should die with the entity they conspired to kill.
Just a Thought

Harrisburg, PA

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#8
May 16, 2009
 
Bush2 started the big government movement to bailout big corporations. Bush2 was an old hickory conservative who got caught not paying attention to the economy until it was too late in the summer of 2007. Blaming Obama is a cry baby tactic.
Mike wrote:
wait a minute GM can't make money but the free market (whats left of it) had all these dealerships. so the problem is not sales its overhead. therefore until GM finds a way to cut costs it will be in trouble.
once again America loses. the obama admin accomplished one thing saving the UAW, but did nothing for the consumer nothing for the investor and nothing for the free market which is the American way.
the only option for GM was chapter 11-and thanks to obama admin the pig of big government has adopted a new piglet in the form of big business. this is just plain wrong bad and disgraceful.
dontpoopwhereyou live

Ashland, KY

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#9
May 16, 2009
 
Just a Thought wrote:
Bush2 started the big government movement to bailout big corporations. Bush2 was an old hickory conservative who got caught not paying attention to the economy until it was too late in the summer of 2007. Blaming Obama is a cry baby tactic.
<quoted text>
Bush2 caused this?! Are you kidding me? Read your history the government has been doing this well before Bush1 was even born.Don't you think it is in the governments best interest to keep viable businesses going by offering loans (They are required to pay back the public unlike the billions we give in "aid" to countries that have no interest in paying the US back for ANYTHING ecept gives greif it is never enough.) x As far as by foreign until America dies is a form of economical terrorism so... thanks friend. With that attitude we should be learning Chinese in about ten years.
John -Willy Park

Schaumburg, IL

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#10
May 16, 2009
 

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Just a Thought wrote:
Bush2 started the big government movement to bailout big corporations. Bush2 was an old hickory conservative who got caught not paying attention to the economy until it was too late in the summer of 2007. Blaming Obama is a cry baby tactic.
<quoted text>
I'm no Bush defender but he started the bailouts with Obama's blessing. So where is the change we were promised? The only "change" I'm seeing is the expansion of Bush policies. Bush spent large and Obama spends larger. Taxpayers now own banks, insurance companies and auto manufacturers. Bush and a crooked congress let it happen and Obama continues the saga.
liner

Rocky Point, NY

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#11
May 16, 2009
 
apache wrote:
I agree with "John aol" but I really would not buy a product that I was not sure would be serviced.
Where I live I wanted to but a Jeep but since finding out the dealership was being closed I would not even think about it. Why? Because when I went into the dealership and asked if they were one of the ones closing I was told "NO" we are safe and Later found out not true,,,so the public is not being told the truth and that is going to hurt the dealerships that are taking over for the ones being closed.
The buying public has the right to know who is and who is not being closed and only in truth will the buying public trust any car dealers.
You went into a car dealer and expected to be told the truth? LOL!!
These guys would kill their grandmother for a sale.
Scott in Memphis

Memphis, TN

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#12
May 16, 2009
 
liner wrote:
<quoted text>
You went into a car dealer and expected to be told the truth? LOL!!
These guys would kill their grandmother for a sale.
Liner,
I am a lifelong family auto dealership owner & I take offense at statements like the one you made about dealers being liars. Has one lied to you? Don't lie now. Car dealers DO NOT have a special franchise on lying. I get lied to regularly by folks in all sorts of businesses "for a sale". There are many good people working in the automobile business who have to get past this stigma every day they go to WORK and make a living. Get real. LOL
areas.
jbee

Freeport, NY

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#13
May 16, 2009
 

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Scott in Memphis wrote:
<quoted text>
Liner,
I am a lifelong family auto dealership owner & I take offense at statements like the one you made about dealers being liars. Has one lied to you? Don't lie now. Car dealers DO NOT have a special franchise on lying. I get lied to regularly by folks in all sorts of businesses "for a sale". There are many good people working in the automobile business who have to get past this stigma every day they go to WORK and make a living. Get real. LOL
areas.
LOL
Tom

AOL

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#14
May 16, 2009
 

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jbee wrote:
<quoted text>
LOL
The UAW reminds me of children from rich parents. The parents give the children everything they want just to shut them up. When Mommy and Daddy are no longer around the kids don't know what to do. I would never buy anything owned by the UAW, they only remind me of RUG RATS.
Craps

Miami, FL

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#15
May 16, 2009
 
Scott in Memphis wrote:
<quoted text>
Liner,
I am a lifelong family auto dealership owner & I take offense at statements like the one you made about dealers being liars. Has one lied to you? Don't lie now. Car dealers DO NOT have a special franchise on lying. I get lied to regularly by folks in all sorts of businesses "for a sale". There are many good people working in the automobile business who have to get past this stigma every day they go to WORK and make a living. Get real. LOL
areas.
I hope your dealership is being shut.I can tell you that every auto dealer I have ever dealt with, has lied to, tried to cheat me, and over charged on repairs and parts.
Ex con ed worker

Madison, TN

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#16
May 17, 2009
 
The sun auto group are the biggest crooked thieves the owner is a retired Con Ed worker who won a large law suit then opened up this sshhiitt Dealership in wantagh if you want to get ripped off please buy a car there.
Not Ur fathers Oldsmobyl

Atlanta, GA

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#17
May 17, 2009
 

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This exact same story ran 25 years ago. Responding to the gas crisis, American buyers were beginning to buy foreign-made cars in droves. The first US manufacturers affected were those who made/sold gas hogs. Then, lo and behold! US buyers found that the foreign-made cars not only were cheaper (by thousands of dollars!) & used less gas, but they needed FEWER repairs! It was the beginning of a love affair that continues to this day. Okay, so what have the US companies done since then? Well, tried to compete by making small cars. The problem was they didn't lower their prices and their cars didn't hold up as well as foreign-made. That is NOT how to stay in business. US car companies appear to be in the business of making/selling expensive gas hogs while lecturing us to "buy American", but this time they may have come too close to the edge. The majority of Americans fully remember how US car companies have responded to the early '80s gas crisis. US taxpayers need to stop bailing these companies out. Allowing them to profit as a "state-sponsored" business has not worked time and again. Time to lay the old gas-guzzling, tens of thousands of dollars pricing, and expensive repairs tradition to rest. Let's move on.
mr voter

Frankfort, IL

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#18
May 17, 2009
 
....thats what happens when you sell junk, dam gm i had been in the shop 6 times beforee they fixed right ...sold it two months ago and got a new toyota
nassau Tax Slaves

Goldsboro, NC

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#19
May 17, 2009
 
Scott in Memphis wrote:
<quoted text>
Liner,
I am a lifelong family auto dealership owner & I take offense at statements like the one you made about dealers being liars. Has one lied to you? Don't lie now. Car dealers DO NOT have a special franchise on lying. I get lied to regularly by folks in all sorts of businesses "for a sale". There are many good people working in the automobile business who have to get past this stigma every day they go to WORK and make a living. Get real. LOL
areas.
Hey scott the big liars are Lawyers
nassau Tax Slaves

Santa Cruz, CA

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#20
May 17, 2009
 
Ex con ed worker wrote:
The sun auto group are the biggest crooked thieves the owner is a retired Con Ed worker who won a large law suit then opened up this sshhiitt Dealership in wantagh if you want to get ripped off please buy a car there.
yeah its funny to read this because they are creepy him and his dad

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