GM moves to open some new dealerships

[Bruce Nunnally]

http://www.freep.com/article/20091112/BUSI...0399/1014/rss13

GM has closed a lot of dealerships as a way to reduce their dealer network and associated costs. It also has the effect of increasing the profit level at the remaining dealers. They are trying to open new dealerships in a number of under-served areas, and are inviting previous dealers in some cases to bid on the new stores.

While it is unclear how many new dealerships GM wants to open, the Detroit automaker confirmed that letters have gone out to some dealers being wound down to invite them to apply for a new store.

"We sent out letters in mid-to-late September looking for people to submit proposals in markets where we either want to reestablish a point or set up a new point," GM spokeswoman Ryndee Carney said.

She did not disclose how many dealers were invited to submit proposals or how many dealerships GM is looking to open. Three proposals have been accepted, Carney added.

[OynxSTS]

I read about this on another forum, I can't see this going well.