posted by GM Dog on Aug 8
Before General Motors declared bankruptcy last year, it had about 6,000 dealerships. The network is undergoing a restructuring following a mandated arbitration by the US Congress. GM is expected to have 4,500 dealers to end the year.
The plan was disclosed during a meeting with financial analysts and bankers. The executives gave a briefing with regard to the company’s plans as it may offer public stocks before 2010 closes.
The carmaker ended their agreements with roughly 2,000 dealers when it went into bankruptcy in 2009. The logic is that a smaller network will allow GM to save some money and beef up their sales and earnings at their remaining locations.