NPT Biz: GM, Chrysler may drop dealers
UPDATE at 1:50 p.m. May 14, 2009: The Times is reporting this: Randy Massey of El Paso’s Mack Massey Chrysler Jeep Dodge said “Everybody in El Paso remained intact,” and won’t be among the dealerships closed as Chrysler tries to emerge from Chapter 11 bankruptcy. KFOX is reporting this: Sandoval Dodge is the only local dealership affected by Chrysler’s decision.
Earlier today, we got another note from a friend of NPT: There are six GM dealers here in El Paso, Rudolph Chevrolet, Viva Chevrolet, Mission Chevrolet, Bravo Cadillac Hummer, Crawford Buick Pontiac GMC, Shamaley Buick Pontiac GMC.
Why the rundown? Because of this Reuters story: 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, three people briefed on the still developing plans said.
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.
Chrysler, which filed for bankruptcy on April 30, will also tell up to 1,000 of its 3,189 U.S. dealers it is terminating their franchise agreements, according to the sources who asked not to be identified because the controversial closure plans have not been yet announced.