GM to Close Fewer Dealerships Than Previously Announced

08/22/96

USA Today reported that GM will close only about half of the dealerships they targeted for closing earlier this year. The newspaper obtained an internal document that Oldsmobile used to tell top dealers that it would like to shut 746 showrooms. That figure amounts to about 25% of its total dealerships, and would leave 2,236 open.

In January, Oldsmobile said they wanted to close 1,400 dealerships. An Oldsmobile spokesman said the division scaled back the projected cuts because it it needs the extra dealerships to sell a wave of new products planned for the next year, including a new Cutlass sedan and Intrigue mid-size car.

The memo said Oldsmobile hoped to close 190 of 537 dealerships in major cities and suburban markets with more than one Oldsmobile showroom. The division has also targeted 556 of 2,445 showrooms in small towns and mid-size cities with only one Oldsmobile dealer each.

Paul Dever -- The Auto Channel