GM conference call

Still no word on whether any local dealers are affected by GM’s decision to close 1,100 dealerships that are underperforming. The list isn’t being made public, so many affected dealers might choose not to reveal that they did get one of the letters.

Kelly Hannon and I listened in on a conference call at noon with Mark LaNeve, General Motors North America vice president of vehicle sales, service and marketing, Here are among the points he made:

• The letters went out yesterday to 1,100 dealerships and started coming in today. They weren’t termination notices but rather stated that GM wouldn’t be extending their sales agreement after October 2010. The dealerships will have until then to wind down their business. Affected dealerships were given the right to submit any additional information to persuade GM otherwise.
• Dealerships that sell just a small number of cars per year or those performing below average were the ones that got the letters. GM hopes that the affected dealerships will slowly wind down their business and sell off their inventory.
• The decisions were painful for everyone affected, but in the long-term it was the best decision for the company and the dealers that remain, LaNeve said. Cut dealerships are spread throughout the country.

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