US car giant bites the bullet and starts shutting showrooms
27 January 2009

More than 1500 forecourts across the US must close by 2012, General Motors has told its dealers.

During a crisis meeting that was later described as “outright hostile” by one dealer chief, the company confirmed it wanted to slim down its US dealer network from 6375 outlets to nearer 4000.

The cuts are the latest realisation of a plan that GM took to Congress last year.

The goal is to close 400 US dealers per year, though the company is still unclear over the precise number of closures.

“We might only get to 1500 rather than 1700 dealers being eliminated,” said a GM source.

It’s understood that General Motors intends to cull its dealerships based on location, sales, age, facilities and customer satisfaction ratings.

Will Powell

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