GM to close 1,100 dealerships
General Motors informed 1,100 dealers nationwide Friday that they will be closed due to weak sales.
The move comes after Chrysler's announcement Thursday that it will close nearly 800 of its dealerships. GM says it will not publicly release a list of businesses placed on the chopping block.
The GM Sholz dealership, located on East Post Road in White Plains, has been in business for 70 years. The owner of the dealership says his business was spared, but according to one employee, that is not true. The uncertainty is raising concerns among local residents who say they would not want to lose the business that has been a staple in their community.
"It's shocking because everything that's happening with the economy, and now it's going to affect a lot of local people," says Alex Zadrima, of White Plains.
GM and Chrysler say they have an excessive number of dealerships that do not bring in enough sales. General Motors has said it is looking to close 2,600 dealerships by the end of 2010. The restructuring of both troubled automakers is expected to leave thousands unemployed.
"I feel bad for the people that lost their jobs, and it's a shame," says Will Ross, of White Plains.