Product Design & Development

Senators seek more info on dealer closures

By STEPHEN MANNINGAssociated Press
Friday, November 20, 2009

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Senators seek more info on dealer closures

Senators are calling on General Motors and Chrysler to release more details on ongoing talks over the automakers' plans to close thousands of auto dealerships as part of their bankruptcies.

In letters Friday to the two companies, the majority of the Senate Commerce Committee sought information on the negotiations brokered by Congress between dealers and the automakers over whether the decisions to shutter dealerships should be reversed.

GM is cutting 2,400 dealerships from its 6,000-dealer network by the fall of 2010 by not renewing franchise agreements and winding down stores with outgoing brands.

Chrysler slashed 789 dealers as part of its bankruptcy proceedings this summer, leaving it with about 2,400.

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