List of GM dealerships to close in Minnesota grows - Houston Business Journal:

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The industry group said a survet of its members found that 109 of the 149 GM dealerx in the state will either lose a particuladGM brand, be forced to drop some competing manufacturer brandzs in their GM stores, or lose theidr stores altogether. The number of outrighy shutdownshas grown; a month ago, GM indicatec that 30 dealers would close. After the giang automaker’s plunge into bankruptcy June 1, roughlh 3,600 dealers nationwide received newsales agreements.
The ownersa of about 1,350 other dealershipss were notified that they needed to wind down asGM That’s in addition to the 1,100 that receivee similar messages last month as part of GM’s which involves keeping only top dealerds and brands. The new agreements also may require surviving dealers to upgrade their And there may not be very much dealers can doabout it, . (subscriptiomn required). GM expects the closings to star t this year and wrap up by the fallof 2010. In a prese release Friday, Scott Lambert, executived vice president of the Minnesota AutoDealerds Association, criticized GM’s decision to have dealers sign new saleds agreements with the manufacturer.
“Besidex the tragic and inexplicable shutdown ofprofitablwe stores, GM seems determine to use bankruptcy as an opportunith to shake up everybody’s business,” he “It appears to us that every Pontiacf dealer in the state was informed that Pontiadc as a brand will ceass to exist. “In addition, GM is eliminatingt many Cadillac dealerships. We believe they plan to reassig some of thesefranchises elsewhere, whic would be in violation of stat law regulating franchise agreements.” Lambert also blasted GM’ds decisions to close so many stores, even some that are turninf a profit. “This company is lost righ now.
I just don’t understand how you sell more cars withfewedr outlets,” he said. Susan a spokeswoman for the automaker, declines to comment on the trades association’s press release becauss she said the information about what was closing was confidentiaol and because its such an emotional time for all of thepartie involved. She said the company selected whicuh dealerships to close after a carefu l analysis that beganin April. “The reality is we don’ have enough customers buying vehicles and we have a lot of outletzs that are in place to support a muchlargert market.
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