America’s struggling car giants General Motors and Chrysler are taking drastic action to avoid collapse. The pair have announced that more than 2,300 dealers will be dropped over the next year and a half in an attempt to slash costs. It puts more than 100,000 jobs at risk across the car industry.
“I believe after our eleven or twelve years here at Gillespie Auto Group that we should not be receiving this letter,” said dealer Mike Helmstetter. “But, in the back of my mind I think there is always a possibility.”
GM spent a billion dollars earlier this decade closing its Oldsmobile division as it found it had too many dealers chasing a shrinking car market. Targetted dealers this time were told by letter that they were being dropped; others learned they had been spared when no letter arrived. President Obama has said he believes the US car industry does have a future, albeit in much smaller and more efficient form.