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It seems counterintuitive. You’d think the more dealers a manufacturer has, the better coverage they’d get, and the more sales they’d realize. Yet, both Chrysler and General Motors are jettisoning dealers as part of their recovery plans. Why?

When we posed this question to Chrysler, we received some excerpts from the company’s testimony to the U.S. Senate regarding this very topic. The excerpts on the following pages have been edited for clarity and comments added for explanation. An inquiry to GM yielded similar answers, but they lacked clear-cut monetary figures.

06.27.2009