Posts Tagged ‘auto transport’

Auto Transport Industry Downsizes Along with GM

Tuesday, June 9th, 2009

GM announced Tuesday that former Chairman and CEO of AT&T Edward Whitacre will become chairman of the restructured automaker later this summer.

GM plans to undertake a quick sale process that would allow a much smaller company to emerge from court protection in as little as 2-3 months.

The Auto Transport industry seems to be adjusting to widespread fallout from the bankruptcy of General Motors Corp., whose vision of a scaled-down company could further weaken car shipping markets.

“The GM and Chrysler bankruptcies, the proposed closures of up to 2,400 Auto Dealerships, and the summer shutdown of Auto Manufacturing Plants have affected the Car Shipping process as many companies have gone out of business or have significantly downsized their fleet.

Some manufacturers are interviewing Vehicle Transport and Logistics Companies to ensure that their cars will not be interrupted over the next couple of months.

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List of GM Dealer closures

Friday, June 5th, 2009

General Motors  has informed approximately  1100 car and truck dealers that its contracts with them will end in October 2010. Those dealers slated to continue as ongoing GM businesses were told this week they must sign a 24 page legal agreement by June 12 or their dealerships, too, would close next year.

John McEleney, chairman of the National Automobile Dealers Association  objected to GM’s terms before the Senate committee Wednesdaysaying

“If I sign (the participation letter), I’ll be committing my business to spend hundreds of thousands of dollars that I know about today and committing to millions of dollars of potential financial obligations in the future. I will also be subjecting my business to sales performance standards that are not specified in the contract,” he told the committee. “Even worse, GM can alter the terms of these requirements at any time at its sole discretion. The final blow, I must waive any right of protest to any action taken by the manufacturer.”

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