General Motors USA began notifying 1,100 of its dealers today that it plans...

[njlondon]

May 15, 2009



General Motors began notifying 1,100 of its dealers today that it plans to discontinue their franchises.



The announcement comes just one day after Chrysler sent notices to 789 of its dealerships, informing them they would soon no longer be able to sell new Chrysler vehicles.



Unlike Chrysler, which undertook its actions as part of a bankruptcy filing, GM does not intend to make the list of discontinued dealers public. It will most likely result in the company choosing not to renew its dealership agreements with those that received the bad news, allowing those effected to ?wind down? their businesses by October 2010. Chrysler?s ?rejected? dealerships will likely be forced to end their new car sales by June 9.



Ricky Smith received the bad news this morning, in the form of a letter from Federal Express. Just two days ago, Mr. Smith was certain his dealership, Ricky Smith Buick Pontiac GMC, in Weymouth, Mass., would survive the dealership shakedown.



?We are as confident as you can feel with the ax hanging over your head,? he said Wednesday. Today, however, Smith was in shock.



He?s worked at the dealership for 37 years. ?I?m very disappointed. Something we?ve worked so long for is in jeopardy of going away.?



Smith intends to fight the decision, and the letter he received invited dealers to send concerns to the company that might cause them to reconsider.



But such changes of heart are unlikely, says Susan Garontakos, a spokesperson for GM. The decisions were based on a series of performance metrics that took into account sales performance, geography, and a range of other criteria that were not a secret to dealers, she says.



Many of the dealers, she says, should ?understand that they are underperforming as it relates to the requirements of the sales and service agreements.?



In a conference call with reporters this afternoon, General Motors North America Vice President Mark LaNeve drew a distinction between the GM announcements and those of Chrysler yesterday, noting that dealers who received the bad news would receive corporate support as they tried to sell off their existing inventory over the next 17 months.



?As we rebuild the GM business into a more efficient and a more flexible company ? that applies also to the dealer body,? Mr. LaNeve said. ?We?ve got too little industry right now, and too little sales to contend with.?



The 1,100 dealers notified are just one component of GM?s plan to shrink its dealership rolls. They will join over 500 Saturn and Hummer dealers, in addition to several hundred as yet unidentified dealers in being phased out from the company. (GM intends to sell its Hummer, Saab, and Saturn divisions.)



Overall, the company hopes to shrink from its current pool of 5,969 dealers to about 3,600 by 2010. The company says reducing the numbers will increase dealer profitability and allow the remaining dealers to be more competitive with other car manufacturers. The 1,100 dealers represent 18 percent of the company?s dealers, but only seven percent of their sales in 2008, the company says.



Combined, the Chrysler and GM reductions will phase out about 9 percent of the nation?s roughly 38,000 dealers. Thousands are likely to lose their jobs.



Smith, the car dealer, doesn?t quite know yet what the future will hold for him. He?s likely to transition into used car sales and says he understands why GM is doing what it?s doing. He acknowledges that as the company contends with a possible bankruptcy filing next month, nothing is certain.



?I like to think they?re being forthright,? Smith says of GM?s announcement. ?I?m not one that sees a lot of conspiracies around ? what else can I do??



Don Sudbay, head of the Don Sudbay Family Automotive Center in Gloucester, Mass., got good news this morning from his district General Motors manager. His brother, who runs the family?s Chrysler dealership, also escaped the downsizing when letters went out yesterday.



Mr. Sudbay says the entire process has been exhausting and emotional as the two brothers field calls from friends and fellow dealers, some of whom didn?t make the cut.



?It?s something that never in a million years would I have expected,? he says. ?It?s totally surreal.?

[shotgun-cam]

Norm Right now some dealers are consolidating here in Toronto notably Popham now Humberview and Old Mill which may move to St Clair Ave w ( by Walmart) and several brands and Dealerships under Roy Foss. I will report on Marvin Starr  as nephew works there.

[shotgun-cam]

The sick joke GM sent notices as emails most dealers won't comment there maybe gag orders in place. Dealers have till their agreements run out so won't cross GM.

[shotgun-cam]

Ok have info Marvin Starr is going Roy Foss is going Old Mill going in Scarborough only 2 will remain City and one other. Queensway is saddly on the list to become a non GM dealer Natch as Hummer Saab and Saturn all are to be sold or terminated.

[njlondon]

[quote author=shotgun-cam link=topic=1074.msg9255#msg9255 date=1243749928]

Ok have info Marvin Starr is going Roy Foss is going Old Mill going in Scarborough only 2 will remain City and one other. Queensway is saddly on the list to become a non GM dealer Natch as Hummer Saab and Saturn all are to be sold or terminated.

[/quote]



  Where did you get this information that Roy Foss is 'going'? I presume you mean they will not be a GM dealer.



  I find this difficult to believe, as they move more product than anyone in Canada.

[jayssut]

if queensway goes where do we go 2 get are hummers warrantied?<img src='http://www.canadianhummerclub.com/forum ... #>/huh.gif' class='bbc_emoticon' alt='???' />?<img src='http://www.canadianhummerclub.com/forum ... #>/huh.gif' class='bbc_emoticon' alt='???' />?<img src='http://www.canadianhummerclub.com/forum ... #>/huh.gif' class='bbc_emoticon' alt='???' />?<img src='http://www.canadianhummerclub.com/forum ... #>/huh.gif' class='bbc_emoticon' alt='???' />?<img src='http://www.canadianhummerclub.com/forum ... #>/huh.gif' class='bbc_emoticon' alt='???' />???

[shotgun-cam]

Info from family member GM told dealers who was and was not staying with them. only 2 made it in Scarborough Think Foss may have Woodbrige dealership but Scarborough is gone as a GM dealer. As for Hummer dealers will go to new Hummer owners I guess. Marvin Starr  was a shock as it has top rating on service, high sales and was stable .

[njlondon]

Jun 01, 2009 10:56 AM EDT



The Wall Street Journal is reporting that the sale of GM's Hummer brand is nearly complete.  According to the report, General Motors Corp. is close to finishing a deal that would save 3,000 jobs in manufacturing, engineering, and at dealerships.



The name of the investor who is set to buy the Hummer brand has not been announced.



A year ago, GM started a review of the Hummer line.  Company officials have talked to several possible investors, including U.S. and Chinese groups.  Now that a buyer has been chosen, GM hopes to close the deal by the end of September.



The sale would likely be a major part of GM's reorganization, which is a requirement of the government-led bankruptcy filing announced on Monday. 

[shotgun-cam]

Queensway says their safe for now June 3/09 we were there today.

[dwaxman1]

[quote author=shotgun-cam link=topic=1074.msg9395#msg9395 date=1244053129]

Queensway says their safe for now June 3/09 we were there today.

[/quote]



did you ask them about warranty??