GM closing dealerships; none in east Idaho

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Story Published: May 15, 2009 at 8:26 PM MST

Story Updated: May 15, 2009 at 11:07 PM MST

By Rick Montañez/CBS News

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RIGBY - Thursday Eyewitness News showed you Chrysler was closing dealerships. Well, now it's General Motors' turn.

GM plans to close down more than 1,000 of its dealerships around the country. Eyewitness News looks into the status of our local dealerships, and what this means for GM.

For dealerships around east Idaho no news is good news.

Friday, General Motors announced it will be shutting down 1,100 dealerships around the country. GM reports those dealerships only made up about 7% of last year's sales.

Tony Gomez, Genaral Manager of Rigby Chevrolet: "We have not heard anything from general motors."
Rick: "So its kind of 'hope for the best'?"
Tony: "Oh, we always hope for the best."

Despite the grim news for Gomez's fellow dealers his office is celebrating.

GM dealers across the country and even here in Rigby are hoping that the unveiling of the new Camaro will keep you buying.

We made calls to the other GM dealers in the area, all are happy not to see this letter.

"Its been up and down, it really has been disappointing," says Don Franks, a GM dealer in Pennsylvania.

It's a different story for Franks, he found out Friday morning he'll no longer sell Cadillacs and Pontiacs. His Pennsylvania dealership didn't make the cut.

"We may not like the message, but the reality of it is something's got to be done," says Franks.

This news comes just one day after Chrysler announced its cuts of nearly 800 dealerships. But there are a few key differences. The Chrysler dealerships will be closed by early June. GM's have until October of next year to wind down. And unlike Chrysler, GM will buy back any left over inventory.

Back at Rigby Chevrolet, Gomez doesn't think his Camaro inventory will last the weekend.

The cuts are part of GM's efforts to downsize. It faces a June 1st deadline from the Obama administration to restructure or file for bankruptcy.

Losing dealerships means thousands of workers will lose jobs. Chrysler has already filed for bankruptcy and GM is fighting hard to avoid it.

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