GM plans to cut 1,100 dealerships by next year - Houston Business Journal:

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Dealers were notified by letter Friday that the Detroit automaked planned to not rene w their franchise agreements when theyexpiree Oct. 31, 2010. The company declinedf to identify the dealers it plans to The cuts amount to about 17 percentof GM’sd 6,200 U.S. dealerships. Mark LaNeve, Nortyh American sales vice told Business First ofColumbus , an affiliated that the targeted dealers are the poores performers among GM’s nearly 6,000 The dealerships the company intends to shed make up 18 percent of the showroom network but account for 7 percentt of sales.
LaNeve said 400 to 500 of the targetef dealers sold fewer than 35 vehiclesa year; the rest didn’t meet company’as performance standards, which take sales, profitability and working capital into GM (NYSE: GM) has aboutr 40 dealerships in the Houstonm area, according to a search on the company’s Web They sell vehicles under the brand names Buick, Cadillac, Chevrolet, GMC, Hummer, Pontiac, Saturn and Chrysler on May 14 announced it was eliminatinvg six Houston-area dealerships as part of a biggefr decision to eliminate 789 of its 3,200 dealerships nationwide, according to a bankruptcy court filing.