According to an article in the Star-Telegram, General Motors and Chrysler worked overtime to convince skeptical lawmakers on Wednesday that shedding dealerships, despite the job losses it will cause, is a necessary evil. The automakers, currently in bankruptcy, say that if they don’t close unprofitable dealerships and implement job losses that may not survive.
The article said:
“This is our last chance to get it right,” GM President Fritz Henderson told the Senate Commerce Committee. He cited “tough times for everyone in the GM family.”
But lawmakers are upset that the bankrupt automakers received bailout money; but will still close dealerships causing more job losses. With more than 2,700 dealerships slated for closure, the amount of job losses will devastate communities. During a committee meeting affected dealerships spoke out about how the closures will harm them and their communities.
One dealership owner was given only 3 weeks notice by Chrysler to shut down operations–an impossible task. Another dealership owner spoke of how his grandfather opened the business in 1919, and how he felt betrayed by the GM bankruptcy and dealership closures. One thing is for sure, the pain from these automaker bankruptcies are going to be felt wide and far.
Job losses caused by the dealership closures won’t be confined to the dealerships and we may even see a surge in personal bankruptcies caused the automaker’s actions.