GM, Chrysler To Cut Up To 3,000 Dealers

GM, Chrysler To Cut Up To 3,000 Dealers

www.reuters.com

DETROIT/WASHINGTON (Reuters) - General Motors Corp and Chrysler aim to drop as many as 3,000 U.S. dealers and are expected to begin sending notifications as early as Thursday.

GM, facing a U.S. government-imposed deadline of June 1 to restructure or file for bankruptcy, is expected to send termination notices to up to 2,000 dealers -- a third of its roughly 6,000 U.S. dealers, the sources told Reuters.

... closures they estimate would cost 200,000 dealership jobs.

(visit the link for the full news article)

Huge things are taking place in US collapsing economy,

3000 Dealers means huge unemployment to all over USA, cuts in services, and when we think about new empty spaces - we see clearly what will be the impact to prices of retail shops...

U.S. retail sales slip, hurting recovery hopes

Sales at U.S. retailers fell for a second straight month in April as cash-strapped consumers held back on purchases, government data showed on Wednesday, denting hopes the economy would soon emerge from recession.

www.reuters.com...

Soon we will see the next huge bubble blowing - Business housing... I can see its coming now fast - Will there be any old banks left after that?

www.reuters.com
(visit the link for the full news article)

[edit on 13-5-2009 by JanusFIN]

And so it continues...
Three dealerships in my area closed down last week. Most of the salesmen had either left or already lost their houses.
I don't feel that people in this country are aware of the impact of this trickle down depression that we are in.

Sooo..cars are not selling, dealers close down, salesmen and secretaries loose their jobs, orders for parts drop, auto tools shops close, the auto manufacturing process comes to a halt.
This is a lot to think about in terms of numbers of workers and dollars generated.
And the lack thereof.

Peace...

yahooo, 30000 less car salespeeps in the world.

I think people need to think back on what brought on this situation. So many parties were involved in what is surely an economic disaster.
The unions for decades, kept the pressure up, with unreasonable demands for wages, benefits, and work rules that were out of bounds, by any reasonable standard.
The companies had no foresight, in terms of the marketplace, continuing to build cars that would not sell.
The banks kept lending to people that really could not afford cars, and continued lending to companies that had shaky futures.
The corporate executives continued to bleed the corporate coffers with huge bonuses.
Finally, the government gave tacit approval for all of this, by continuing to bail out companies that should have been allowed to fail long ago. In addition, the government failed to heed the coming storm of oil problems, ignoring the impending storm of supply and cost problems.