13 May 2009

Hummer Sale Pending

"GM received three bids for Hummer, and expects a sale by the end of May."

From Calculated Risk.

Meanwhile, GM's stock price has fallen to a record low of just over a dollar, with many GM executives unloading their shares of the company. GM has also expressed interest in selling Saab and Saturn, but these negotiations do not appear to be making progress.

There are 100 GM dealerships in Colorado (it says it plans to shut down more than 40% of its dealerships), 44 Chrysler dealerships in Colorado (it says it plans to shut down 25% of its dealerships), and two stand alone Lincoln-Mercury dealerships in the state (a concept that Ford plans to discontinue). So, the state could easily lose more than 50 car dealerships out of more than 240 of them in the state (all per the Denver Post today). Then again, this is definitely a "your results may vary" scenario. Colorado has gained much of its population relatively recently, and so it is less likely to have an excess of dealerships than many states.

Dealership shutdowns are more likely to cause lost jobs in Colorado than other changes in the automobile industry, because few people are directly employed by the Big Three or their major suppliers in the state.

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