Auto Executives To Address Senate

by Gabe Bullard on June 2, 2009

From Kentucky Public Radio’s Lisa Autry (WKYU-Bowling Green)

The U.S. Senate Commerce, Science and Transportation Committee will hear from General Motors and Chrysler executives about dealership closures Wednesday.

Chrysler plans to end its relationship with 800 dealerships, while GM is aiming to drop 11 hundred dealers. There are about 62 hundred GM dealerships in the country. Owensboro Chevrolet dealer Don Moore says that’s too many for the current economy.

“The market share for GM has gone from 51% down below 20% and the low teens,” he says. “When that has occurred, it’s not viable to have so many dealers. The dealers cannot continue to make the money.”

The committee will look at ways to protect the employees and owners of targeted dealerships who could end up with hundreds of thousands of dollars in inventory that cannot be sold.

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