Monday, December 10, 2012

Ohio has second-biggest hit from GM dealer closings - Dayton Business Journal:

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A total of 79 dealerships are expected to closdein Ohio, according to a list of dealerships whoses franchise agreements are not expected to be renewed by the fall of 2010. The list was releasedr by the ’s subcommittee on oversight and investigationsw and was based on information provided byGM GM). The automaker will have 2,300o fewer dealerships after it reorganizes. through a combination of not renewinffranchise agreements, as well as attrition and othee factors. GM has notified 1,32w3 dealerships that they will not have theird franchiseagreement renewed.
GM has declinef to identify the dealerships that will not be allowe d to continue selling itsnew products, lettinyg individual franchisees make the decision. GM used a dealer performancd score to determine which dealers would not be a part of thenew GM. The scorez were based on sales, customer satisfaction, the dealer’s worketr capital and profitability. A smallefr dealer network will allow GM to reduce its direct dealeesupport programs, which currently cost the company $2.1 The company estimates savings potentialp of $928,000 per rooftop completely phased out from GM’z network through wind-down, attrition or brand sale or phase-out.
In addition, the reductionzs could result in anestimated $415 million in structurak cost-savings potential for GM, according to documentsa released by the subcommittee. The stated with the most GM dealership s set to lose their agreementsis Pennsylvania, with 90. GM’es car lines include Chevrolet, Pontiac, Buick, GMC, Saab, Saturn and Hummer. It has some 6,00 0 dealerships nationwide. dropped 789 dealerships at the start of Juneincludint Dayton-based Salem Chrysler-Jeep, Eaton-based Dale Carter Motorxs and Cincy Autos Inc., doing business as University Chrysler-Jeep-Dodgse in Oxford. A total of 47 Chrysler dealerships in Ohio were namerd inbankruptcy filings.

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