GM to close 1,100 dealerships

The Wall Street Journal
May 18, 2009
AUTO : BUSINESS

General Motors Corp. told owners of 1,100 U.S. dealerships Friday that it intends to drop them from its retail network, a new indication that the auto maker appears headed for a bankruptcy filing as soon as June 1.

Letters to the affected dealers said the company doesn't expect to continue doing business with them beyond October 2010. In a conference call with reporters, General Motors sales chief Mark LaNeve acknowledged that carrying out the plan would be difficult outside of bankruptcy-court protection, according to a May 16 article in The Wall Street Journal.

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