CEO of General Motors Fritz Henderson (L) and President
of Chrysler James Press testify before a House Energy
and Commerce Oversight and Investigations Subcommittee
hearing on â€œGM and Chrysler Dealership Closures and
Restructuringâ€ on Capitol Hill in Washington
June 12, 2009. (REUTERS / Kevin Lamarque)
More than 95 percent of eligible dealers at bankrupt General Motors Corp have signed on or verbally agreed to participate in the new company, Chief Executive Fritz Henderson said on Friday.
Henderson also told a House of Representatives subcommittee that almost 90 percent of dealerships slated for termination have signed or verbally agreed to wind-down terms.
GM had given dealers until Friday to decide whether they would continue selling vehicles for the company under new terms aimed at streamlining the distribution and sales network and increasing market share.
Our dealership consolidation is not just about saving money, but about creating opportunity and revenue growth, Henderson said, adding that the company is considering 856 appeals from dealerships facing termination.
Chrysler President Jim Press told the panel that Chrysler has sold or redistributed 99 percent of inventory from the 789 dealerships it is closing as part of its bankruptcy restructuring.
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