Tuesday, August 28, 2012

It's official: 15 General Motors dealers in Colorado to lose franchises - Pacific Business News (Honolulu):

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It was the first definitivew statement of exactly how many GM dealers in the statw were informed thay will lose their franchise agreementzin 2010. The Colorado Automobile Dealers Association previously had estimated the number at 13 to 15 based on reportsfrom dealers. GM still is not releasingv the names ofthe 1,323 dealerd it plans to drop including the 15 in Colorado. The informationj came in a list released by the Houses Energy andCommerce Committee's Subcommittee on Oversight and based on information provided by GM. Executivesa of GM and Chrysler, which plans to shed 14 Colorado dealers, testified before Congress abouyt their dealer plans Friday.
GM's car linez include Chevrolet, Pontiac, GMC, Cadillac, Saab, Saturn and Hummer. It has some 6,000o dealerships nationwide. Letters sent in mid-May to GM dealere the company plannedto drop, a copy of which was obtainecd by the Denver Businesz Journal, said the automaker reviewed each of its sales volume, profitability, capitalization, locatiohn and facilities along with other "market patterns." . "Basedx on our review and current and foreseeable markeft conditions andyour dealership'sx historical performance, we do not see that GM can have a productive business relationship with [name of dealership] over the long said the letter, daterd May 14.
About 92 of Colorado's 264 auto dealerships sell one or more GM said Tim Jackson of the statde autodealers group. Additional dealers may lose theirfranchises later, GM has said.

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