GM Bankruptcy Expected To Lead To Dealership Closures in California

Share |
(Sacramento, CA)
Monday, June 1, 2009

General Motors’ bankruptcy is expected to lead to the closure of at least 75 dealerships in California.  But, more could be on the way.
That’s the word today (Monday, 6.1) from Peter Welch, President of the California New Car Dealers Association. 
Welch says the association has conducted a survey of the 313 GM dealers in California.  He says at least a third say they expect to lose their GM franchise license in October.
Welch says that’s expected to have the most impact on rural areas where the GM dealers play an important role in the community... 
“Whether it’s the advertising field...or philanthropic with little league baseball teams, local rotaries, eating establishments that are around the’s a big impact...”
Welch says GM’s bankruptcy comes when ALL new car dealers in the state are struggling to make a profit.  He says California new car sales were down 43-percent during the first quarter of the year, while GM sales were off ten-percent in the same period.  Last month, Chrysler announced it was closing 32 dealerships in California as part of its plan to file for bankruptcy protection.