Six AutoNation dealers among GM closures - South Florida Business Journal:

lydiryl.wordpress.com
The names and locations of the dealerships are not being made unless the individual dealers choose to disclose the GM (NYSE: GM) has about 75 South Florida AutoNation said in a press release it woule not disclose which of its locations are on the but issued a news release sayinb it supports the consolidation plan. GM’s announcement comexs a day after said it would close 789dealershipx nationwide, four of which are in South Florida. But, Chrysler’ s closures are part of a bankruptcy which means there are fewer opportunities to Unless GM files forbankruptcy – as is expecte by some – it could face lawsuitse over its closure plans.
A letter sent to the GM dealer s and obtained by the Business Journalsays “wee [GM] do not see that GM can have a productivse business relationship with [dealer name] over the long term.” Dealershipl associations have decried the closings as unfairt to dealers who thought they were investinfg in their future. “We would like to see the marketplace determinerwho survives,” said Rick director of the . “This guy invested millionsx of bucks, and now you’re closinyg him down.
” A spokesman for the Nationaol Auto Dealership Association noted that the cutsare "drastidc and far reaching" and will impact more than 63,000 employeees and thousands of customers. "GM's decisionm comes through no fault ofthe dealers, who are, in many family-run businesses that have been loyal partners with GM - througnh good times and bad - for multiple generations," the statement reads.
During a conference call, Mark LaNeve, GM Nortnh America vice president forvehicle sales, service and marketing, acknowledged that some dealershipsa might want to fight the He said the decision to close dealerships was baserd on performance, and the closures list is populated with poor Dealers, he said, will have to decids whether to accept GM’s wind-down support or to “They may want to take legal we’ll have to see," LaNever said. "Without a [bankruptcy] filing, thes may be hard to enforce." Franchise agreementa are written understate law, but a federal bankruptcyg court order would trump state law.
Besidexs the 1,100 underperformers GM will cut, an additionaol 500 dealerships will depart when GM sells the Saab andSaturn brands. GM also has 35 stand-alonew Pontiac dealerships that will go away when it phasezs out Pontiacby year-end 2010. GM expects to lose about 500 more dealershipxs through natural attritionthis year. The companyy has said that through April, 275 dealershipsx will have closed as a combinatioh of voluntarily terminationand consolidations. Up to 600 otherd dealerships will be closed throughy consolidationsand buy-sell negotiations. The moves to shrink dealeer networks underscores the economic pain caused by the downward spirall of GMand Chrysler, now operatin under U.S.
government oversight. GM filer a supplement with the relatingg to its exchange offersfor $27 billion of its unsecurer public notes and related conseny solicitations that began on April 27. The company said it is considerint bankruptcy in the event that it does not receive enoug tenders of notes to consummatse the exchange offers beforeJune 1.