GM dealership closures to cost 137,000 jobs, according to NADA

[Subdivisions]

National Automobile Dealers Association chairman John McEleney, said in a written statement that GM must treat all of its dealers fairly and those that close should be compensated.

"It's not out of any fault of their own that these dealers are being forced to close their businesses," McEleney said.

He said many details were unknown about how the dealerships will be closed, but "137,330 dealership employees will lose their jobs, and state and local governments will lose an estimated $1.7 billion in sales tax revenue that would have been used for economic development in communities around the country."

GM announced Monday it plans to reduce dealerships by 42 percent from 2008 to 2010, cutting them from 6,246 to 3,605.

GM is living on $15.4 billion in government loans and faces a June 1 government deadline to complete restructuring moves, win concessions from its unions and cut its debt. If it fails to meet the deadline, it will go into Chapter 11 bankruptcy protection.

GM has decided to scrap its Pontiac brand and either sell or close Hummer, Saturn and Saab. It will focus on four core brands: Chevrolet, Cadillac, GMC and Buick.

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http://www.msnbc.msn.com/id/30458421


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ETA: And that doesn't even include the number of people in supporting industries that will also be hurt due to GM's down-fall...

[Javaman]

1. This virus will spread faster than the swine flu.

Like flicking a bed sheet to clear the wrinkles, so many support businesses will also vanish from the landscape.

This will make several small Detroits all over the nation.