GM Follows Chrysler, Cuts 1,600 US Dealerships
General Motors Corp said it would drop about 1,600 U.S. dealers as it struggles to slash billions of dollars in operating costs and debt ahead of an anticipated bankruptcy filing by the end of the month.Taken together with a similar announcement by bankrupt Chrysler LLC a day earlier, over 2,300 U.S. auto retailers have been put on notice that they are being eliminated by the two embattled automakers.
The unprecedented closures taken under the direction of the Obama administration are expected to cut 100,000 jobs across the United States and show the spreading economic pain from the collapse of the two Detroit-based automakers.
"This is going to be a mess," said Atlanta-based dealer consultant Jim Ziegler. "These dealerships are crucial to the local communities. Dealers are big advertisers. There will be a lot of ripple effects."
Yet another terrific day for the American worker. As previous posts have shown, I do not understand the moves being made to try and save the American Auto Industry. No fundamental changes have been announced, they are just doing what all giant corporations do when in a tight spot. Slash jobs. GM and Chrysler are on a not too slow march right off the cliff. These steps taken over the last few days only delay their demise. We should move the last bastion of American manufacturing into a new and green future. Massive public transportation systems are just waiting to be built. Afterall, our infrastructure is rapidly decaying. With all the rage being around new green jobs here is the chance to give new life to these companies. The system is already in place, let us use it. Or we watch the unemployment numbers climb even higher. I wouldn't think it was much of a choice.


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