2,600 GM dealerships + 800 Chrysler dealerships -- gone!

[red states rule]

How can this be? I thought our billions in auto bailouts and the Chosen One was to fix all this

This is Barry Obama's idea of an auto bailout and job creation!

Well at least the UAW will still be paid even though their entire industry is crumbling. Wonder if anyone's told them that once the other two go down, their precious pensions won't be there.

Hard to sustain a business when you're paying people that haven't worked there for 20 years. Not a great business model.



Next on the block: 2,600 GM dealers
GM is due soon to start notifying dealers of plan to cut 42% of network. Metro-area and suburban dealers to feel the deepest hit

NEW YORK (CNNMoney.com) -- The next auto businesses on the chopping block will be 2,600 General Motors dealerships.

GM Chief Executive Fritz Henderson said Monday that the company would by the end of the week start notifying dealerships it wants to eliminate over the course of the next year. The company said last month that it planned to eventually eliminate 42% of its 6,250 dealer locations, which employ more than 300,000 workers among them.

On Thursday, Chrysler LLC's announced that it is dropping nearly 800 Chrysler, Dodge and Jeep dealers, or about a quarter of its network, as part of its bankruptcy restructuring.

GM (GM, Fortune 500) is not yet in bankruptcy court, although Henderson has said such a filing is "probable." The company has until the end of the month to win agreement from creditors, unions and dealerships on a turnaround plan or the Treasury Department, which has been bankrolling GM's ongoing losses, has said it will force the company to file for bankruptcy.

GM, Chrysler and Detroit rival Ford Motor (F, Fortune 500) all have far larger U.S. dealer networks than their Asian rivals, a remnant to the days when the so-called Big Three dominated the market in a way they no longer do.

Many of the GM dealership cuts have been telegraphed by the company's broader cuts in its brands.

http://money.cnn.com/2009/05/14/news/companies/gm_dealers/index.htm?postversion=2009051416

[Joe Steel]

How can this be? I thought our billions in auto bailouts and the Chosen One was to fix all this

Obama is leaving the management of the auto companies to the capitalists who run them. They're doing what they think they have to do to recover from the blunders made by the last bunch of capitalists who ran them.

[red states rule]

Obama is leaving the management of the auto companies to the capitalists who run them. They're doing what they think they have to do to recover from the blunders made by the last bunch of capitalists who ran them.

and the bilions in taxpayer money that was flushed down the toilet?

Obama and the Dems said the bailouts would save those jobs and they would not have to close plants and dealerships

[Insein]

Obama is leaving the management of the auto companies to the capitalists who run them. They're doing what they think they have to do to recover from the blunders made by the last bunch of capitalists who ran them.

Which is what we could have done without spending billions of tax payer dollars. Instead we spent the money, they still failed and people still lost their jobs. So what was the reason for the bailout? Whats your spin on that?

[Joe Steel]

Which is what we could have done without spending billions of tax payer dollars. Instead we spent the money, they still failed and people still lost their jobs. So what was the reason for the bailout? Whats your spin on that?

With government backing the plan, GM and Chrysler can expect better terms from lenders and suppliers.

[red states rule]

Which is what we could have done without spending billions of tax payer dollars. Instead we spent the money, they still failed and people still lost their jobs. So what was the reason for the bailout? Whats your spin on that?

To pay the unions back for decades of loyality to the Dem party

[Little-Acorn]

NEW YORK (CNNMoney.com) -- The next auto businesses on the chopping block will be 2,600 General Motors dealerships.

The company said last month that it planned to eventually eliminate 42% of its 6,250 dealer locations, which employ more than 300,000 workers among them.

No problem. The showrooms will not evaporate, the service bays will not fall off the edge of the earth. And the people who work in them will not simply vanish.

Volkswagen, Toyota, Ford, Nissan, Honda and the rest, would love to open new dealerships, and would be happy to move into these ready-made facilities after GM turns tail and runs. When former GM customers start wondering if they'll be able to get parts and service in three years, the others will be happy to assure them that they will... if their next car is a Ford, Honda, VW or etc.

This always happens when one company collapses, whether due to their own incompetence or coercion by others (govt, unions etc.). Others take up the slack. Yeah, it causes temporary pain. Then people come back in or move on, and life goes on. Welcome to the real world.

[red states rule]

No problem. The showrooms will not evaporate, the service bays will not fall off the edge of the earth. And the people who work in them will not simply vanish.

Volkswagen, Toyota, Ford, Nissan, Honda and the rest, would love to open new dealerships, and would be happy to move into these ready-made facilities after GM turns tail and runs. When former GM customers start wondering if they'll be able to get parts and service in three years, the others will be happy to assure them that they will... if their next car is a Ford, Honda, VW or etc.

This always happens when one company collapses, whether due to their own incompetence or coercion by others (govt, unions etc.). Others take up the slack. Yeah, it causes temporary pain. Then people come back in or move on, and life goes on. Welcome to the real world.

This is a classic case of too little too late. Unions are inflexible right to the point of closing the company down.


The really sad part is that in this countries we have success models to follow. Look no further than Toyota and Honda USA. Plants that are run with the future in mind.

We have politicians many of whom have never ran a successful business let alone a car business trying to dictate how the big 3 should do business. We have unions so short sighted that they fail to understand that the future of their jobs is in jeopardy and refuse to compromise. Add to that the leadership of the big 3 assuming that Obama and the Dems will save them.

How with this combination could a successful outcome happen?

[Insein]

With government backing the plan, GM and Chrysler can expect better terms from lenders and suppliers.

So GM and Chrysler execs and unions make out on our money. How does that help those employees thatgot laid off or the millions of taxpayers that got screwed?

[emmett]

With government backing the plan, GM and Chrysler can expect better terms from lenders and suppliers.



:lol:


Joe....Barry said bailouts would save those companies. He also said it would be redundent to invest all those dollars and them still file BK. Look up the link yourself.

Barry was wrong but I expect you will not admit that.

GM and Chrysler are history. They will never rebound from this.