General Motors wants to close more dealers in an effort to avoid bankruptcy
16 April 2009

General Motors is accelerating its plan to cut its US dealer network by a quarter over the next five years in an effort to meet its 1 June restructuring deadline.

Despite having already closed around 200 dealerships in the first quarter of 2009, GM is aiming to terminate more underperforming franchises before June.

The move comes after the US autos task force rejected GM’s restructuring plan last month. One of the problems identified was GM’s planned dealer cull, which, the task force concluded, was not far-reaching enough.

GM is hoping that around half of its dealer cuts will come from the sell-off or closure of the Hummer and Saturn brands.

It is unlikely that the remainder of dealers will get the sort of compensation that cost GM an estimated $1bn (£670 million) when it shut down Oldsmobile.

Matt Rigby

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