Group says fewer GM dealerships to closeby Jessica Mador, Minnesota Public Radio
St. Paul, Minn. — The Minnesota Automobile Dealers Association estimates the state could lose three dozen General Motors dealerships as a result of GM's bankruptcy, fewer than the 60 closures the group projected at the beginning of the week.
The group says nearly three quarters of the state's 149 GM dealers face some sort of disruption, including requirements that they stop selling vehicles made by GM competitors.
Scott Lambert from the Auto Dealers Association says the dealership closings will hurt Minnesota's local economies.
"We are going to lose cornerstone businesses in a lot of rural locations," he said. We estimate job loss of upwards of 2,400 people between GM and Chrysler closings."
A spokesperson for GM says the company looked at sales figures and local markets to determine which dealerships to close.
All GM dealers have until June 12th to accept new contracts. Dealers who do not sign the paperwork face immediate termination.
GM spokeswoman Susan Garontakos says the bankruptcy has forced the company to make tough choices.
"We love our dealers. They have done a great job for us, but right now it's affecting everybody as a company," she said. "As a whole, we have to come down to a much smaller organization."
GM says the closings are based on sales and market data.