21 Nebraska GM dealerships targeted for closure

The 21 dealerships targeted in Nebraska is a higher number than that in several states with a larger population and is a larger percentage of dealerships than GM is targeting nationally. It is also more than

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buy this photo General Motors Chief Executive Officer Fritz Henderson, left, and Chrysler President James Press, listen to opening statements during a House Energy and Commerce subcommittee hearing on auto dealership closures Friday. (AP Photo/Susan Walsh)

Nebraska will lose 21 General Motors dealers if the automaker has its way, according to a document made public Friday by the House of Representatives' Energy and Commerce committee.

The 10-page document sheds a little more light on the company's plans as it seeks to downsize and return to profitability following a bankruptcy filing earlier this month.

GM said last month that it plans to cut 1,100 dealers nationwide. But, unlike Chrysler, which named the dealers it planned to cut as part of its bankruptcy, GM has not made public the list of dealers targeted to lose their GM franchises, although a handful of dealerships have confirmed they are on the list.

The document made public Friday does not name the dealers either, but it does show where the cuts fall in each state.

The 21 dealerships targeted in Nebraska is a higher number than that in several states with a larger population and is a larger percentage of dealerships than GM is targeting nationally. It is also more than twice as many dealers as Chrysler cut in the state.

GM said the overall cuts would amount to about 18 percent of its dealer network. But in Nebraska, that cut would be about 30 percent (21 of 71).

Loy Todd, president of the Nebraska New Car & Truck Dealers Association, was out of town Friday and could not be reached for comment.

According to the document, GM is targeting all dealerships that sell less than 50 of its vehicles annually. Other dealers that might have been targeted include those with performance issues, unprofitable dealers and dealers that also sell non-GM brands.

GM is offering the dealers "wind-down" agreements, in which they will be given 16 months to get rid of inventory, do warranty service and receive assistance from GM.

According to the documents, any dealer that doesn't sign a wind-down agreement will be immediately terminated.

The document's release Friday coincided with a hearing in which GM and Chrysler executives defended the closings of hundreds of dealerships as House lawmakers questioned whether the decisions would save any money or help the troubled companies rebound.

GM CEO Fritz Henderson told a skeptical House panel that the dealer cuts were "quite painful" but necessary to preserve over 200,000 jobs at GM's remaining dealers.

"In essence, this is our last chance," Henderson told the House Energy and Commerce Committee's oversight and investigations subcommittee.

Chrysler Deputy CEO Jim Press said the cuts were "the most difficult business action" of his career but were among the shared sacrifices by the United Auto Workers union, bondholders and others needed to save the company.

Chrysler cut 789 dealerships, including nine in Nebraska.

In total, GM is expected to reduce its dealer body by 2,500 through the shuttering of dealerships, anticipated attrition and the shedding of its Saturn, Hummer, Pontiac and Saab lines.

Henderson told the committee that 856 dealers had appealed GM's decision to sever ties. As of now, GM has reversed itself on 45 of them, he said.

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