General Motors announced today that it will drop about 1100 dealership franchises across the country -- but said it will not publicly release the names those dealers, including those in the tri-state area.
There are hundreds of GM dealerships across New York, New Jersey and Connecticut – but it is unclear how many, and which ones, will be cut loose. If you know of a dealership that is closing, please contact News 4 New York.
The news that GM was closing more than 1000 dealerships by the end of next year came on the heels of Chrysler’s decision to eliminate 789 dealerships, or 25% of its U.S. network, by June 9, according to bankruptcy court filings. Unlike GM, Chrysler has released a list of dealerships that will be shuttered.
Chrysler wants to close 28 dealerships across New York state and 31 in New Jersey. One New York City dealership, Nalley Roswell Chrysler Jeep on Third Ave., is slated for closure.
"We have said from the beginning that our dealers are not a problem but an asset for General Motors," Mark LaNeve, GM vice president of sales services and marketing said in a statement. "It is obvious that almost all parts of GM , including the dealer body, must get smaller and more efficient."
The company told the Obama administration it will slash its 6,000-dealer network down to 3,600 by next year. GM has a government-imposed deadline of June 1 to come up with a restructuring plan or file for bankruptcy.
Budget cuts will also come from selling or closing four GM brands: Saturn, Hummer, Saab and Pontiac. There are roughly 600 dealerships across the country that sells these four brands exclusively.
The average dealership has 52 employees, according to the National Automobile Dealers of America. This could mean about 57,000 could be out of work as a result of GM's actions Friday.
The company received $4 billion in government loans and filed for Chapter 11 bankruptcy protection on April 30.