AUTOMOTIVE NEWS -- General Motors, which is preparing for a 40 percent cut in its dealer network by the end of 2010, this week will send warning letters to nearly 1,000 dealers, sources told Automotive News today.
The letters will be sent Thursday to about 1,000 "underperforming" dealers and will arrive at their dealerships on Friday, said one of the sources familiar with GM's plan. The letters will warn dealers that their franchise agreements will not be renewed when they expire in October 2010, the sources said.
The letters will outline the dealership's deficiencies and detail how the dealership failed to meet the requirements of GM's sales and service agreements, said one of the sources familiar with the contents.
