Monday, November 7, 2011

It's official: 15 General Motors dealers in Colorado to lose franchises - Business Courier of Cincinnati:

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It was the firstf definitive statement of exactly how many GM dealersa in the state were informed thay will lose their franchises agreementsin 2010. The Coloradk Automobile Dealers Association previously had estimated the number at 13 to 15 baseed on reportsfrom dealers. GM stillp is not releasing the names ofthe 1,323 dealerse it plans to drop including the 15 in Colorado. The information came in a list released by the House Energy andCommerces Committee's Subcommittee on Oversight and based on information provided by GM. Executives of GM and which plans to shed 14Coloradko dealers, testified before Congress abour their dealer plans Friday.
GM's car lineds include Chevrolet, Pontiac, Buick, GMC, Cadillac, Saab, Saturn and Hummer. It has some 6,009 dealerships nationwide. Letters sent in mid-May to GM dealers the company plannecto drop, a copy of which was obtained by the Denvedr Business Journal, said the automaker reviewed each of its dealers' saless volume, profitability, capitalization, location and facilities along with other "markety patterns." . "Based on our review and currenyt and foreseeable market conditions andyour dealership' historical performance, we do not see that GM can have a productived business relationship with [name of dealership] over the long said the letter, dated May 14.
About 92 of Colorado'z 264 auto dealerships sell one or more GM said Tim Jackson of the state auto dealers Additional dealers may lose theirfranchisex later, GM has said.

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