Treasury Issues Statement On GM Dealer Consolidation Announcement

The U.S. Treasury issued a statement on the GM (NYSE: GM) dealer consolidation announcement:

Today, General Motors initiated the dealer consolidation plan it laid out in its interim plan on April 27, 2009.

GM's announcement is part of the company's larger effort to restructure to achieve financial viability. The Task Force is continuing to work with GM and all its stakeholders and will stand behind GM during this process to ensure that it emerges as a more competitive, viable business in the long-term. As was the case with Chrysler's dealer consolidation plan, the Task Force was not involved in deciding which dealers, or how many dealers, were part of GM's announcement today.

As difficult as these announcements are for the dealers that will no longer be selling GM and Chrysler cars and the communities in which they operate, without the President's intervention, the entire GM and Chrysler dealer networks could have been lost. The Administration's commitment to this industry has given both companies a new lease on life. By supporting a restructuring that results in stronger car companies – supported by efficient and effective dealer networks – this process will not only provide more stability and certainty for current employees but the prospect for future employment growth.

In addition, the Administration is committed to continuing its significant efforts to help ensure that financing is available to creditworthy dealers and to pursuing efforts to help boost domestic demand for cars. These steps will help auto dealers, the auto industry, and the American economy.

You May Also Be Interested In

• Critical-Minerals Supply Chains Need More Than Mines. Greenland Mines Is Pursuing a North Atlantic Corridor Strategy
• BofA says convenience store sales trail broader retail channels
• Morgan Stanley raises 2026 commercial real estate volume forecast