GM Sending Termination Notices to 1,100 Dealers Across the U.S.

Only a day after Chrysler LLC announced that it is shutting down almost 800 dealers or a quarter of its sales network, General Motors sent termination notices to 1,100 of its 6,000 dealerships on Friday. According to GM spokeperson Susan Garontakos, the dealers that received notice are being told that their contracts will not be renewed when they expire in October 2010.

The move is part of a greater scheme to cut the automaker's network by more than 40 percent to 3,600 dealers by the end of 2010 as GM struggles to avoid bankruptcy by a June 1 government-set deadline. The rest of the cuts will come from the sale of the Hummer, Saab and Saturn brands that control about 600 dealerships, the axing of Pontiac that has around 35 standalone dealers and the closing of the remaining number of dealerships through buy-sell negotiations.

Via: CNN