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General Motors dealer closing effects on communities
Vehicle sales are still being affected by the current economy, as a result General Motors (NYSE:GM) has announced that it is to close almost 3,000 dealerships over the coming 12 months. A number of experts in the field believe this to be the correct decision, but closing these GM dealerships will do nothing to the troubled American automaker.
HometownAnnapolis explains that these dealers are independent businesses, and helps to generate more than 90 percent of all revenue for the automobile manufacturer. These businesses also helps to provide a huge distribution channel, all of which comes at very little cost to the manufacturer.
The simple truth is this, these dealerships closing will result in more than 150,000 jobs being lost. We only hope that out of all this, the taxpayer receives its $18 billion that the government lent to both GM and Chrysler.
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