GM and Chrsyler to close 3,000 dealerships.

[Guest guest]

Gm and Chrylser to close 3,000 dealerships.

DETROIT/WASHINGTON (Reuters) – General Motors Corp and Chrysler aim to drop as many as 3,000 U.S. dealers and are expected to begin sending notifications as early as Thursday, three people briefed on the still developing plans said.

GM, facing a U.S. government-imposed deadline of June 1 to restructure or file for bankruptcy, is expected to send termination notices to up to 2,000 dealers -- a third of its roughly 6,000 U.S. dealers, the sources told Reuters.

Chrysler, which filed for bankruptcy on April 30, will also tell up to 1,000 of its 3,189 U.S. dealers it is terminating their franchise agreements, according to the sources who asked not to be identified because the controversial closure plans have not been yet announced.

The moves to shut down auto dealerships underscores how the economic pain caused by the downward spiral of both automakers -- now operating under U.S. government oversight -- is spreading beyond their home base in Detroit.

The development comes as dealer representatives have stepped up lobbying in Washington to try to slow down closures they estimate would cost 200,000 dealership jobs.

http://news.yahoo.com/s/nm/20090513/bs_nm/us_autos_dealers

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I thought those bailouts were supposed to keep this kind of thing from happening? It was to save jobs but now 200K are going to be gone. Many of those aren't blue collar schlub jobs either but middle and upper middle class jobs. Of course, this probably wouldn't be happening if GM and Chrysler for forced into bankruptcy last year before the bailouts gave the current administration the power to steal from investors to pay back the unions for their votes.

I also have a cousin who has sold Chrysler for 40 years. I hope he doesn't get the axe. Then again, his father started the dealership in the 1930's selling Ford, but the son changed to Chrysler in the 1970s I think it was. His son is in the dealership too. No telling what they'll do if it closes. Maybe start selling Chinese cars. Dell Mini Netbooks: Great deals starting at $299 after instant savings!

[Guest guest]

" GM and Chrylser to close 3,000 dealerships. "

Good.

They can then take dealer stock from closed dealerships and ship it around the

countnry to other more profitable dealers. This will keep Chrysler and GM from

having to pay people to produce additional cars that would otherwise wind up

being sold at auction to rental car companies anyway.

It will also be a good lesson for the auto workers. The longer they are out of

work, the more they will learn to appreciate what work is and how lucky they

were to have it when they were employed. It will hopefully keep them from being

so greedy about wages and benefits in the future as well.

Administrator

[Guest guest]

" it is a shame that dealers and others have to suffer because of their greed. "

Dealers themselves are greedy. They sell identical cars to different people at

different prices.

Women typically pay more than men for cars because they do not bargain as much.

If you come prepared knowing what the dealer cost is for a car, you can

negotiate for a lower price than the next guy in line who does not have that

information.

As a slaesman, how ethical is it to sell identical products to different people

at different prices. When the difference between one sale and another may be

thousands of dollars, how can a salesman sleep at night knowing they might have

sold one car to a male executive with a good income for $25,000.00 and sold the

same car with all the same add-ons to an old grandmother living on a fixed

income for $28,000.00?

The concept that Saturn has: Everyone pays the price that appears on the

sticker, is a good one...except that the price is too high anyway.

The fact is automakers suffer on two fronts: Unions screw the companies out of

profits, and people are reluctant to buy cars more often because, not only are

they too expensive, but the whole car buying experience leaves a buyer feeling

greasy, and as though they got rooked, even if they paid the best price that

could have been negotiated.

Administrator