A subscription is required, but Automotive News has some interesting articles on the extreme pressure dealerships are under right now. One recent article noted that GM has lost 165 dealerships in the first few months of 2009, while Chrysler lost 35 dealerships in March alone.
The article noted that the Obama administration rejected GM’s proposal to pare its dealership network down to 4,200 from the 6,273 in operation at the end of 2008, and the inference from the administration is that such a cut may not be enough.
Many dealers are responding to the tough economy by slashing inventory and cutting employees. One dealer quoted in the article said he was down to one technician in the dealership’s service department.