GM, Chrysler Execs Defend Dealership Cuts

Law360, New York (June 1, 2009, 12:00 AM EDT) -- Executives at bankrupt Chrysler LLC and General Motors Corp. on Wednesday defended their decisions to slash thousands of dealerships, telling the U.S. Senate Committee on Commerce, Science and Transportation that the cuts were crucial to building efficient, profitable new companies.

Chrysler plans to discontinue 789 dealerships by June 9, and General Motors plans to cut 6,000 dealerships to between 3,500 and 3,800 by the end of 2010.

Half of the discontinued Chrysler dealerships sell fewer than 100 of the company's vehicles a year, Chrysler President James...
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