On Friday, GM sent letters to approximately 1,300 dealerships across the nation letting them know that their contract will not be renewed after 2010. One industry insider in Richmond who spoke on background said that there will be another round of cuts and that GM dealers will learn more in 20 days.
A dealer in Roanoke who just days earlier received a notice from Chrysler that his Jeep dealership was being axed, also got bad news from GM, according to the Roanoke Times.
Last week, Richmond BizSense reported that two local Chrysler dealerships would close. Chrysler is in bankruptcy protection, and a list of cuts appeared in the bankruptcy filing.
Many analysts believe that GM is weeks away from filing for bankruptcy.
“There is no list of dealerships that were cut,” said Tom Wilkinson, PR representative at GM’s corporate headquarters, “nor will there ever be one. It’s to no one’s advantage to know which dealers will not have their contracts renewed.”
Royal Chevrolet on Broad Street did not receive a letter.
“They were anxious time on Friday,” said Del Mugford, co-owner of Royal Chevrolet.
Local dealerships that received letters would probably not let the public know for 30 days, Mugford said.
David Larter is a BizSense reporter. Please send news tips to [email protected]