gm to shut a 1/3 of its dealers

renovation · Post by **renovation** » Sun Jan 25, 2009 12:34 pm

General Motors has been cutting costs in many ways, and now the company is focusing on its dealerships.

After sales have dropped more than 10 percent last year, the automaker said it is set to close shops.

General Motors officials were meeting with dealers and was expected to discuss the possibility of slashing dealerships by 30 percent in three years.

As part of a $13.4 billion federal loan, Rick Wagoner told Congress the company plans to eliminate 1,750 dealers by 2012.

The company currently has 6,500 dealers across the country-- a number analysts have said is too high.

The closed-door meeting at the Annual National Automobile Dealers Associate Convention this week will help decide which dealers will be affected.
http://www.clickondetroit.com/automotiv ... etail.html
this is really needed they sell/make so many look a like cars and brands.

Executioner · Post by **Executioner** » Sun Jan 25, 2009 1:47 pm

Wonder how many jobs that amounts to?

Err · Post by **Err** » Sun Jan 25, 2009 2:01 pm

Executioner wrote:Wonder how many jobs that amounts to?

I bet each deal employs at least 30 to 100 people. This just doesn't affect the car salesmen, you have to count the parts department, administrative assistants, mechanics, and even the guys who clean up all the cars. This is really going to hurt. I'm guessing they close the lowest volume dealers; those who sell the least amount of new cars.

About 3 years ago, our local Ford/Chrysler dealership announced they were going to drop the franchises and only sell used cars. (I cursed them at the time but now I'm think they knew something we didn't) My Dad, a parts clerk, lost his job. He took another parts position at a GM dealership shortly after. I'm praying that his dealership doesn't get cut. He's 58 and it's really tough to find jobs right now in our area.

GuardianAsher · Post by **GuardianAsher** » Sun Jan 25, 2009 4:11 pm

One of the dealerships here in my home town, which had been open for nearly 50 years, just up and closed shop about a month ago with very little warning. It was like one day they were there, next day, all the cars on the lot were gone. And a Ford dealership which has been here for longer is starting to look pretty grim too. And this is in one of the more economically-sound parts of Texas too. I hate to see how the rest of the country is doing right now... this is horrible

Executioner · Post by **Executioner** » Sun Jan 25, 2009 8:02 pm

Our unemployment rate here in Southern cal is around 10%. I've been lucky that the field I'm in is medical manufacturing. I'm even getting a bonus somewhere around 15% next month, and probably a 3% raise in March. In my position as a jr manager for our calibration lab, all the managers were told to cut costs and negotiate contracts, which is what I'm going to do this year as one of my goals for 2009. My yearly budget is ~ $2.4 million, with external costs amounting to ~$400,000. I have to find 10% in there. Sucks.

renovation · Post by **renovation** » Sun Jan 25, 2009 10:31 pm

here they have lay off medical staff at one of the major hospitals , and at my wifes hospital they have a hiring freeze thats been going on now for 4-6 months. they will only replace a openning if there is no one else that is quilafied to do that job . this includes techs and medical staff (dr or nurses )
also they have stop a building project they planned for 10 years .

nexus_7 · Post by **nexus_7** » Sun Jan 25, 2009 11:29 pm

There are too many GM locations anyways. THey do not need a gmc and a pontiac and a saturn and a chevy and a cady and a hummer... combine many of them. I can easly tell you there is at least a 3 or 4 to one ratio of gm to toyota or nissans around here as far as dealers go.

EvilHorace · Post by **EvilHorace** » Mon Jan 26, 2009 12:52 pm

Not long ago I read that Volvo's planning to close 1/3 of its US dealers by the end of this year. I'm glad I no longer work for Volvo after being with them 22 yrs. Everyone I see who I use to work with says I got out just in time.
Our Lexus dealership has slowed recently too but that's not uncommon for this time of year and fortunately for us techs, Lexus just launched 3 huge recalls so now we're busy, even have to work saturdays. There are lots of vehicles involved and the recalls are time consuming, some paying around 9 hours for all 3.