General Motors Corp and Chrysler aim to drop as many as 3,000 U.S. dealers and are expected to begin sending notifications as early as Thursday, three people briefed on the still developing plans said.
GM, facing a U.S. government-imposed deadline of June 1 to restructure or file for bankruptcy, is expected to send termination notices to up to 2,000 dealers -- a third of its roughly 6,000 U.S. dealers, the sources told Reuters.
Chrysler, which filed for bankruptcy on April 30, will also tell up to 1,000 of its 3,189 U ...Continue reading
CRP Sheds Light on Auto Industry’s Influence
In light of President Obama’s announcement yesterday of further government control over the auto giants General Motors and Chrysler, our... View ArticleContinue reading
Bailout Recipients Lobbying
From October 1, 2008 through the end of the year, eighteen companies that had received, or would receive, bailout funds... View ArticleContinue reading
Big Three Ask for Money, Spend On Lobbying
Executives for the Big Three auto makers are in Washington again asking for money. (Did you know they drove to... View ArticleContinue reading
Financial Bailout: Do Interests of Automakers and Members Diverge?
Reading the restructuring plan that General Motors put together makes me wonder whether, in a broad sense, there isn't an insuperable conflict of interest between members of Congress and the automakers. Consider just one aspect of the plan:
...the number of GM retailers is expected to decline to 4,700 by 2012. This will occur primarily in metropolitan and suburban areas where GM has too many dealers to serve the market. In the Plan, it is projected these dealers will be reduced by 35%, increasing annual throughput for the remaining outlets to a more competitive level with other high-volume ...Continue reading