GM terminating about 1,100 dealer franchises - KTRE.com | Lufkin and Nacogdoches, Texas

GM terminating about 1,100 dealer franchises

NEW YORK (AP) - GM says it's notifying 1,100 "underperforming" dealers that it plans to drop them, as the automaker works to nudge itself back into the black.

FedEx letters bearing the bad news began arriving today, saying dealers were judged on sales, customer service scores, and the location and condition of facilities.

But, the letters say the decision isn't finalized, giving dealers to the end of the month to submit information that may change the automaker's mind.

One GM executive says dealers are an asset, but too many dealers "are a problem."

The cuts are part of the automaker's plans to lose about 40 percent of its 6,200 dealerships. They come on the heels of

Chrysler's announcement that it's shedding 800 dealerships. GM also plans to provide updates to about 470 Saturn, Hummer and

Saab dealerships on the status of those brands, which it plans to sell. It says it expects some dealers will shut themselves down.

None of the dealers in the Lufkin-Nacogdoches area had received any word from GM as of 4 p.m. today.

Copyright 2009 by The Associated Press. All Rights Reserved.

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