DENVER—A trade group says at least one Colorado dealership that Chrysler LLC plans to shed has received notice that General Motors Corp. may drop it too by late next year.
Colorado Automobile Dealers Association President Tim Jackson said GM and dealers aren’t publicly disclosing who received notices Friday that they could be cut, but Jackson said he spoke to some Colorado dealers who received notices. He wouldn’t name the dealers.
GM told dealers its plans aren’t finalized yet. CADA sent a memo Friday urging Colorado GM dealers who are affected to accept the company’s invitation to submit more information to GM by the end of the month.
CADA urged dealers to consider their impacts in their communities, investments made at GM’s request, sales and customer service performance, and positive contributions to GM’s reputation.
Colorado has about 90 dealerships selling at least one GM brand and about 44 Chrysler dealerships, Jackson said.
Chrysler said Thursday it plans to shed about a dozen Colorado dealers, if a bankruptcy court approves.
Jackson estimates GM could be targeting 12 to 15 Colorado dealers, based on sales.
A new state law taking effect July 1 offers some protections to auto dealers whose franchises are dropped. Senate Bill 91, which Gov. Bill Ritter signed into law in April, would allow dealers to recover some costs of unused, undamaged, unsold vehicles that a manufacturer has delivered in the last year.
