Last week, we discussed a few of the myriad challenges currently facing auto dealerships across the country, namely that thousands of them would likely be closing in the near future. Unfortunately, that harrowing prediction has come to fruition as GM and Chrysler combined have informed nearly 2,000 dealerships across the country that their franchise contracts will not be renewed once they expire.
For many Chrysler dealers the announcement, while surely disappointing, is not a death knell to their business, as many sell other brands and can continue business. Many GM dealers, however, sell only GM cars. Thus, today’s announcement that GM is cutting 1,200 dealers by not renewing franchise agreements means that those dealers will be forced to shut their doors in the near future.
GM, which has received $15.4 billion in government aid, is still trying to avoid bankruptcy during a time when U.S. auto sales have hit a 27-year low. The GM dealer cuts are part of their plan to do so. Chrysler, which is already operating under bankruptcy protection, still plans to cut an additional 2,400+ dealers in addition to the 789 they announced yesterday.
As one of our primary industries of service, NCT takes the challenges being faced by auto dealers across the country seriously. While we feel tremendous sympathy for those dealers being forced to shut their doors, and the individuals whose lives will be altered in the process, we also want to do our part to help sustain those
dealerships that will remain open.
As an industry leader in providing check guarantee and payment solutions to the auto industry, National Check Trust is offering a free consultation to everyone in the auto industry. Cash flow is obviously the lifeblood of any business, and maximizing cash flow is especially imperative during challenging times such as these.
Contact us to take advantage of our offer so that we can explore together how to improve your cash flow and, in the process, your sustainability moving forward. We are here to help, and are exceedingly willing and able to do so.
Tags: cash flow consultation, chrysler, dealer cuts, franchise contracts, gm cars, gm dealers
[...] of NCT’s most value customers recently came out in support of the plan announced by GM to close many dealerships across the country. In a press release, AutoNation Chairman and CEO Mike Jackson called the dealership consolidation [...]