Move could pressure UAW, bondholders to make concessions

Robert Snell / The Detroit News

In moving to eliminate 1,100 underperforming dealerships by late next year, General Motors Corp. on Friday sent a message to bondholders and the United Auto Workers that all stakeholders are being asked to make sacrifices, industry experts said. ....... [clip]

David Cole, chairman of the Center for Automotive Research in Ann Arbor, recognizes U.S. automakers want a successful dealer body comparable with foreign companies, especially Toyota Motor Corp., which has far fewer dealers. But the end result "won't be a dramatic decrease in cost."

That's because dealers are independent businesses that own their own property and buy cars. The automaker provides training, but dealerships are not cost centers like assembly plants.

feeds@yuku.com (LloydMiller) http://a-albionic.com/reply/646 Sun, 17 May 2009 05:48:41 PST http://a-albionic.com/reply/645/Nationalized-Autos-Cut-FREE-Sales-Force-to-Increase-Sales#reply-645 Chrysler, GM to Close Nearly 2,000 US Auto Dealerships By Elizabeth Lee
Washington
16 May 2009
General Motors, the largest U.S. automaker says it is not renewing... ]]> feeds@yuku.com (LloydMiller) http://a-albionic.com/reply/645 Sun, 17 May 2009 05:33:34 PST http://a-albionic.com/topic/154/Nationalized-Autos-Cut-FREE-Sales-Force-to-Increase-Sales http://detnews.com/article/20090516/AUTO01/905160313/
GM to cut 1,100 dealers

Move could pressure UAW, bondholders to make concessions