The chief executives of General Motors (GM) and Chrysler told Congress on Wednesday that reducing the number of dealerships was critical to saving their companies. The executives said they have too many dealerships to support their reduced output, and sacrifices must be shared as the automakers struggle to overcome bankruptcy. “We have no choice. We're all being called to sacrifice in order to build a stronger, more viable GM,” chief executive Fritz Henderson told the Senate Commerce Committee, adding that the company is aiming for “fewer, stronger brands as well as fewer, stronger dealers. … These are tough times for everyone in the GM family.” Chrysler president Jim Press told the committee that a quick restructuring of its dealer network was critical for its successful transition into an alliance with Italy's Fiat. “Poor performing dealers cost us customers,” he said. “If they don't sell cars, we don't either.” GM, which filed for bankruptcy protection on Monday, plans to cut almost 1,600 dealerships over the next 18 months. Chrysler, also in bankruptcy protection, wants to reduce its network of dealers by 789 by June 9. Committee Chairman Jay Rockefeller (Democrat from West Virginia) suggested that both automakers were abandoning customers and dealers, some of whose families have been in the auto business for decades. “I don't believe that companies should be allowed to take taxpayer funds for a bailout and then leave local dealers and their customers to fend for themselves with no real notice and no real help,” Rockefeller said. “That is just plain wrong.”
