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GM to cut at least 1,000 dealers

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By TOM KRISHER

The Associated Press

Published: April 29, 2009

DETROIT - General Motors Corp. told its dealers Tuesday that it will force 1,000 to 1,200 underperforming locations to close their doors as the automaker tries to thin dealer ranks to make the remaining outlets more profitable.

GM told the dealers about the plan in a video conference, according to a dealer who spoke on condition of anonymity. It is part of the company's plan announced Monday to cut more than 2,600 dealers by 2010. That would reduce the number by 42 percent to 3,605 dealerships.

The company expects to lose 500 Hummer and Saturn dealers when those brands close or are sold, and it expects 400 dealers to close voluntarily. An additional 500 would be consolidated into other dealerships, according to the dealer.

Additionally Tuesday, the top executive of GM's Saturn brand says the company will sell or phase out the brand by the end of this year, nearly two years faster than previously announced.
Saturn General Manager Jill Lajdziak says the brand most likely will be sold, given the interest of several buyers who have surfaced.

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