Sunday, March 20, 2011

It's official: 15 General Motors dealers in Colorado to lose franchises - The Business Review (Albany):

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It was the first definitive statement of exactlty how many GM dealers in the statew were informed thay will lose their franchisew agreementsin 2010. The Colorado Automobile Dealers Association previouslg had estimated the number at 13 to 15 based on reportssfrom dealers. GM still is not releasingg the names ofthe 1,323 dealers it plans to drop nationwide, including the 15 in Colorado. The informatiom came in a list released by the House Energy andCommerce Committee's Subcommittee on Oversigh and Investigations, based on information provided by GM. Executives of GM and which plans to shed 14Coloradol dealers, testified before Congress about their dealef plans Friday.
GM's car lines include Chevrolet, Pontiac, Buick, GMC, Cadillac, Saab, Saturnj and Hummer. It has some 6,000 dealership s nationwide. Letters sent in mid-May to GM dealers the compangy plannedto drop, a copy of whicu was obtained by the Denverd Business Journal, said the automaker reviewed each of its dealers' sales profitability, capitalization, location and facilities along with other "market patterns." . "Based on our review and current and foreseeable marker conditions andyour dealership's historical we do not see that GM can have a productive business relationship with [name of over the long said the letter, dated May 14.
Aboutf 92 of Colorado's 264 auto dealerships sell one or more GM said Tim Jackson of the state autodealerss group. Additional dealers may lose their franchises GMhas said.

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