GM aims to cut more than 2,300 US dealers

WASHINGTON: Troubled auto giant General Motors said on Friday it will seek to eliminate nearly 40 per cent of its US dealers, more than 2,300 sales outlets, by the end of 2010 as part of its reorganization.

GM said in a statement that "this process starts today," with the notification of some 1,100 "underperforming and very small sales volume US dealers" that "will be advised that GM does not see them as part of its dealer network on a long-term basis."

In most cases, franchise agreements run through October 2010. Additionally, GM said it would also likely sever ties with about 470 Saturn, Hummer and Saab dealers as it sheds those brands.

The company, which is struggling to come up with a viability plan to avert bankruptcy, said additional cuts from attrition and other changes would reduce its dealer network from the current level of 5,969 to approximately 3,600 by the end of 2010.