# GM to just let dealers go **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [April 29, 2009, 11:01am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991 "2009-04-29T11:01:16Z")\ **Posts on this page:** 18\ **Page:** 1
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 29, 2009, 11:01am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/1 "2009-04-29T11:01:16Z")
**GM will pay terminated dealers only for inventory, parts** Automotive News April 29, 2009 - 11:56 am ET DETROIT – General Motors says it will repurchase unsold new vehicles and parts from dealers whose franchise agreements are terminated, but the automaker won’t compensate dealers for the loss of the franchise. GM says that in 2010, it will not renew the franchise agreements of dealers at up to 1,200 dealerships with low scores on various performance measurements. Many of the dealerships are in metro markets with too many stores. The 1,200 terminations are part of a GM plan to reduce its dealership count to 3,605 by the end of 2010. As of Jan. 1, 2009, GM had 6,273 U.S. dealerships, according to the _Automotive News_ annual census. Yesterday, GM sales chief Mark LaNeve spelled out the termination plan to dealers in a special broadcast. A dealer who listened said: “There was no money for anything other than what the franchise agreement calls for – meaning we can send back new cars, parts, special tools and some signage.” The dealer declined to be identified. Starting in May, GM will meet with or send a letter to about 1,000 to 1,200 GM dealerships informing them that “they will not be part of a reinvented GM going forward, and we’ll work on a transition with them,” LaNeve told _Automotive News_ on Monday. LaNeve characterized the group of dealerships as “very poor performing and not adhering to the sales and service agreement obligations.” For example, the dealership might be dualed with a non-GM brand or have poor customer service ratings, inadequate facilities, poor new-car sales or inadequate working capital. In addition to the 1,200, LaNeve said that: • About 500 dealerships will close by year end out of normal attrition, other dealers who listened to the broadcast said. • GM expects to lose an additional 500 dealerships that now handle Hummer, Saab and Saturn vehicles. The company is trying to sell all three brands. GM is phasing out Pontiac by the end of 2010 and will lose 35 stand-alone dealerships at that time, LaNeve said. • GM will seek to close another 500 or so dealerships, mostly in overcrowded metro markets. LaNeve declined to say whether GM would provide extra cash to do those deals. LaNeve said: “I look at that last group as more than likely we will get involved with the dealers who are going forward with GM and work with them as buy-sells and consolidations.” ---
**Author:** ![Shockwave179](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/shockwave179/32/7496_2.png) [@Shockwave179](https://forums.speedlife.net/u/Shockwave179)\ **Post date:** [April 29, 2009, 11:09am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/2 "2009-04-29T11:09:01Z")
I guess this is to be expected… ---
**Author:** ![j\_espo1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/j_espo1/32/7291_2.png) [@j\_espo1](https://forums.speedlife.net/u/j_espo1)\ **Post date:** [April 29, 2009, 11:12am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/3 "2009-04-29T11:12:00Z")
let’em sink. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [April 29, 2009, 11:19am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/4 "2009-04-29T11:19:59Z")
It’s pretty easy to see they have far too many dealers just looking around WNY. Just a quick search on google maps shows: Paddock Glen Campbell Joe Basil Gillogly Steve Baldo Heinrich West-Herr Fuccillo David Keller Jim Murphy and Amherst Chevrolet Really? There might be more Chevy dealers per square mile than Star Bucks, and at least Star Bucks is selling something people buy every day. ---
**Author:** ![greenbull](https://avatars.discourse-cdn.com/v4/letter/g/bc8723/32.png) [@greenbull](https://forums.speedlife.net/u/greenbull)\ **Post date:** [April 29, 2009, 11:20am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/5 "2009-04-29T11:20:42Z")
Amherst Chevy? lol. Out of business for like 2 years now. They moved from somewhere in NT to the Blvd and flat lined. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [April 29, 2009, 11:22am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/6 "2009-04-29T11:22:45Z")
> [@greenbull](#): > > Amherst Chevy? lol. > > Out of business for like 2 years now. They moved from somewhere in NT to the Blvd and flat lined. Yeah, I didn’t recognize that one but listed it since it was on google. But oooh, 11 instead of 12. And I just searched for Chevy. I could probably triple that list if I searched for all GM brands. ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [April 29, 2009, 11:26am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/7 "2009-04-29T11:26:40Z")
Do a similar search for Toyota. West Herr Mike Basil Northtown Fuccillo Gambino (NF) Batavia ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 29, 2009, 11:32am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/8 "2009-04-29T11:32:05Z")
Jim Murphy is BPG not chevy > **[Buffalo & WNY Buick and GMC - Jim Murphy Buick GMC](http://www.jimmurphycars.com/)** > > At Jim Murphy Buick GMC you'll find excellence in new cars, used cars, service, parts and financing. Visit our Buffalo area dealership today! ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 29, 2009, 11:35am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/9 "2009-04-29T11:35:01Z")
Also, compare Chevrolet volume to Toyota in WNY, I bet it is close to double. Not really a good example, but I agree that GM has a distribution system for a 25 - 30% market share on 14 million cars sold and neither are happening. Edit: I’ll try to find the numbers, double might be strong, but the plants make WNY a strong domestic market ---
**Author:** ![spinall4](https://avatars.discourse-cdn.com/v4/letter/s/e47774/32.png) [@spinall4](https://forums.speedlife.net/u/spinall4)\ **Post date:** [April 29, 2009, 11:39am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/10 "2009-04-29T11:39:20Z")
Cant wait to see all the salesman come begging to get a job now… ---
**Author:** ![Avatar](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/avatar/32/5076_2.png) [@Avatar](https://forums.speedlife.net/u/Avatar)\ **Post date:** [April 29, 2009, 2:29pm UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/11 "2009-04-29T14:29:20Z")
Why even talk about Toyota? Are they shuttering dealers too? This is a good thing. Finally, GM is making moves to be a better business. ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [April 29, 2009, 2:39pm UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/12 "2009-04-29T14:39:14Z")
Hmmm… I wonder what effect (if any) this will have on pricing… ---
**Author:** ![Avatar](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/avatar/32/5076_2.png) [@Avatar](https://forums.speedlife.net/u/Avatar)\ **Post date:** [April 29, 2009, 2:58pm UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/13 "2009-04-29T14:58:22Z")
I wonder how long the GM parts division will continue to service the discontinued brands. ---
**Author:** ![dubbin91](https://avatars.discourse-cdn.com/v4/letter/d/ecccb3/32.png) [@dubbin91](https://forums.speedlife.net/u/dubbin91)\ **Post date:** [April 30, 2009, 6:03am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/14 "2009-04-30T06:03:06Z")
> [@Avatar](#): > > I wonder how long the GM parts division will continue to service the discontinued brands. Well the way there car’s stand up over 3-5 years…this is how they can make there money back! ---
**Author:** ![Joe](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/joe/32/7219_2.png) [@Joe](https://forums.speedlife.net/u/Joe)\ **Post date:** [April 30, 2009, 6:20am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/15 "2009-04-30T06:20:07Z")
:picard: ---
**Author:** ![\_Karu](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/_karu/32/7602_2.png) [@\_Karu](https://forums.speedlife.net/u/_Karu)\ **Post date:** [April 30, 2009, 6:50am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/16 "2009-04-30T06:50:17Z")
Don Davis Pontiac == gone. ---
**Author:** ![BigRon](https://avatars.discourse-cdn.com/v4/letter/b/58956e/32.png) [@BigRon](https://forums.speedlife.net/u/BigRon)\ **Post date:** [April 30, 2009, 6:56am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/17 "2009-04-30T06:56:58Z")
Well they do have Buick and GMC so they could stick around, unless you got some inside info. ---
**Author:** ![Blue\_Eyed\_Devil](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blue_eyed_devil/32/7292_2.png) [@Blue\_Eyed\_Devil](https://forums.speedlife.net/u/Blue_Eyed_Devil)\ **Post date:** [April 30, 2009, 7:08am UTC](https://forums.speedlife.net/t/gm-to-just-let-dealers-go/66991/18 "2009-04-30T07:08:44Z")
Dealers should list EVERYTHING on ebay at like 1% above cost. lol Liquidate and Raise some cash! I don’t think the surviving dealers would be happy.😃