Wednesday, May 20, 2009

242 GM Dealerships to Close in Canada: 15-30,000 jobs gone by 2010

[Autorevu, Halifax] 

Sadly, it's the end of the line for over 240 GM dealerships across Canada. This translates into roughly 15,000 to 30,000 direct and indirect jobs related to the dealerships. Those on the hit list have been offered compensation, with the goal to chop 40% of their overall dealership size by 2010. It's just another grim reality of the decline with the global giant against a brunt of foreign carbuilders. If you're one of those affected you have my sincere and deep condolences. Basically, your root company has abandoned you and there is nothing these dealers can do, other than sell their space and close shop. Going to another brand may be impossible due to regional zones that other existing dealers already have licenses for. 

And last week some of the top executives, including Bob Lutz, decided to sell their remaining shares in GM to recoup any last bit of money they could squeeze out of their company. The market capitalization for GM has shrunk to a tiny 600 million dollars in the past few months. To sum it up: The executives are greedy selfish swine; the US and Canadian governments are on the hook to provide financing during the (eventual) bankruptcy of GM and all consumers who have purchased a GM vehicle recently will be hit with an enormous loss of value because their vehicle has suddenly become an orphan.

There is bound to be more bad news in the near future and I anticipate this summer to be incredibly difficult for all involved in the auto industry. Gone are the days of free wheeling test drives. People need to earn money and dealerships simply can't afford to let journalists drive their vehicles off the lot if they're not sure they'll be around the next month. Honestly, I could not bring myself to test drive anything at a Chrysler dealership last weekend. I knew their parent company was bankrupt; I would be driving a vehicle I had no intention of driving, I wanted to review it. But really, I feel for those sales folks and the only people I'll more than likely visit are the foreign brands. God only knows when the economy is going to get better - my own rough idea is mid 2010; but even that time line is very optimistic. 


No comments: