More GM Dealer Franchises Expected to be Lost

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More than 1,100 GM dealers were recently let go by General Motors, and it seems that was just the beginning. With GM now officially in bankruptcy, more dealerships are likely to be cut in the coming weeks.

Another 450 GM dealerships are likely to lose their franchises when it’s time for franchise agreements to be renewed, which is not much of a surprise to those in the industry says one used car dealer Hartford. GM has pointed out that dealerships that are at risk have specific problems that will hinder the restructuring. These problems may include simply having low sales says Used Cars Birmingham. But some dealers that have exclusively sold dissolved brands such as Pontiac will also not receive a franchise renewal.

When all is said and done, GM will be cutting more than 1,500 dealerships. Some have already received notices, while other dealers are expected to be notified this week of what can be expected. As the largest bankruptcy in U.S. history gets underway, New Orleans Auto Loans say these cuts are expected as GM will soon be selling fewer brands to consumers.

In addition to these cuts, Used Cars Orlando points out that GM is also likely to sell off Hummer, Saturn, and Saab. With these brands gone, this could increase the number of dealers that will lose their franchises in the coming months.

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