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Texas Auto Dealers React to GM Downsizing

By BJ Ausitn, KERA News

Dallas, TX – General Motors today is notifying 1100 dealerships their franchises will NOT be renewed.

Bill Walters, President of the Texas Automobile Dealers Association, says this is a blow to family-owned businesses, and he calls it an American tragedy.

Walters: It's very disappointing that the manufacturers and the Obama Automotive Task Force and the Treasury Department are terminating family businesses that are viable today, and are profitable and would continue to do business and serve their communities were it not for an arbitrary termination.

Walters says he's heard from at least a dozen Texas dealers who have received letters from GM today. He says many of them are small-town, rural dealerships - that serve communities that really depend on them.

GM says the cuts are part of a larger plan to drop 42% of dealerships as the automaker struggles to become profitable again.

Email BJ Austin