GM announced today that by the end of 2010, they will be cutting around 1,100 dealers across the US, which is about 18% of their dealer network. These 1100 dealers are what they call the “underperforming and very small sales volume” franchises.
Their previous news of shrinking the GM brand by making cuts like killing Pontiac, for example, plays in with their long-term plan here, which is to make a healthy and smaller volume of vehicles and dealers instead of a high quantity of “iffy” models and sales outlets. In other words, it’s survival of the fittest.
GM will start reaching out to dealers today, and they’re leaving it up to the individual dealership to decide when to make it public that they’re being axed.