1700 Dealerships closing.....

[Mr_Draco]

Originally Posted by Design1stCode2nd

Don't really see how they can do that without being sued or paying compensation they don't have. Individual state franchise laws still apply. Unless this is just a prelude to Chap. 11 on June 1 or some sort of special thing backed by the treasury.

Obviously selling Saturn/Saab/Hummer helps clear out dealers without cost to GM.

GM can just choose not to renew the contract which will pretty much force the dealers to close. Also on most franchise contracts, there is usually a clause that if the dealer doesn't meet sales expectations that GM can cancel their contract at any time which sounds like what GM is doing.

Originally Posted by cam2fst4u

I can get to 5 chevy dealerships from me in 45 mins. I am afraid the one I deal with may get shut down. I hope not. Anyway to find out which ones it is?

I think all of those will be safe unless one of them is doing really bad. The last time they did a press release on this, it was commented that the majority of closing will be in the metro areas where there is 4-5 dealers with just a few miles from each other.

[Hylton]

Originally Posted by Mr_Draco

GM can just choose not to renew the contract which will pretty much force the dealers to close. Also on most franchise contracts, there is usually a clause that if the dealer doesn't meet sales expectations that GM can cancel their contract at any time which sounds like what GM is doing.

Ford did that to all the Mercury dealerships up here. Basically they closed, the dealerships sued, Ford through 'em a bone and everyone went away happy.