More on GM’s restructuring:
• According to Automotive News, GM will stop building Pontiac vehicles immediately and attempt to sell the remaining inventory by the end of the year.
• Beginning in May, GM will contact approximately 1,000 of its lowest-performing dealerships to inform them that their franchise license will not be renewed for 2010. According to Automotive News, GM will use factors like sales, customer service scores, etc. to weed out low-performing dealerships as part of its goal to cut the dealership network down to 3,600 by 2010. The company finished 2008 with 6,246 dealerships, but approximately 200 reportedly closed in the first quarter.
• Also, the Washington Post is reporting that GM will ask the government to exchange debt for stock, essentially nationalizing the company.
Just an editorial opinion, but bankruptcy (for GM) is looking better and better all the time. Would a nationally owned GM play fair with other automakers (i.e. Ford, Toyota, Honda, etc.), or would the government “cajole” buyers into GM cars with special offers. And what about service? How would a government-owned GM run its service operations, and what effect would that have on the fast lube industry?